Kinnear Plastics manufactures various components for the aircraft and marine industry. Kinnear buys plastic from two vendors:
Question:
The controller at Kinnear collected the following information on purchases for the past year:
The purchasing manager has just received bids on an order for 150 tons of plastic from both Tappan and Hill. Tappan bid $741 and Hill bid $720 per ton.
Required
Assume that the average quality, measured by the amounts discarded from the two companies, will continue as in the past. Which supplier would you recommend that the purchasing manager select?Explain.
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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