[The following information applies to the questions displayed below.] Hult Games buys electronic components for manufacturing from two suppliers, Milan Components and Dundee Parts. If the components are delivered late, the shipment to the customer is delayed. Delayed shipments lead to contractual penalties that call for Hult to reimburse a portion of the purchase price to the customer. During the past quarter, the purchasing and delivery data for the two suppliers showed the following. MilanDundeeTotalTotal purchases (cartons) 91,000 39,000 130,000 Average purchase price (per carton)$22.00 $24 $22.60 Number of deliveries 60 40 100 Percentage of late deliveries 25% 10% 19% The Accounting Department recorded $533,000 as the cost of late deliveries to customers. Required:Assume that the average quality, measured by the percentage of late deliveries, and prices from the two companies will continue as in the past. What is the effective price for components from the two companies when late deliveries are considered? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Effective price refers to the price that should b come after deducting the discount. It is simply…

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Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter6: Statistical Inference

Section: Chapter Questions

Problem 43P: The Port Authority sells a wide variety of cables and adapters for electronic equipment online. Last...

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[The following information applies to the questions displayed below.]

Hult Games buys electronic components for manufacturing from two suppliers, Milan Components and Dundee Parts. If the components are delivered late, the shipment to the customer is delayed. Delayed shipments lead to contractual penalties that call for Hult to reimburse a portion of the purchase price to the customer.

During the past quarter, the purchasing and delivery data for the two suppliers showed the following.

	Milan	Dundee	Total
Total purchases (cartons)		91,000			39,000			130,000
Average purchase price (per carton)	$	22.00		$	24		$	22.60
Number of deliveries		60			40			100
Percentage of late deliveries		25	%		10	%		19	%

The Accounting Department recorded $533,000 as the cost of late deliveries to customers.

Required:

Assume that the average quality, measured by the percentage of late deliveries, and prices from the two companies will continue as in the past. What is the effective price for components from the two companies when late deliveries are considered? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

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