JFI Foods produces processed foods. Their basic ingredient is a feedstock that is mixed with other ingredients
Question:
Yield = Gold output ÷ Input
where the output and inputs are both measured in tons. As a benchmark, JFI expects to get 8 tons of good output for every 10 tons of feedstock purchased for a yield of 80 percent (= 8 tons of output ÷ 10 tons of feedstock).
Data on the two suppliers for the past year follow:
Required
Assume that the average quality, measured by the yield, and prices from the two companies will continue as in the past. What is the effective price for feedstock from the two companies when quality isconsidered?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Question Posted: