Calculate the cost per component for each supplier, taking into consideration the costs of the supplier-related...

Transcribed Image Text:

Calculate the cost per component for each supplier, taking into consideration the costs of the supplier-related activities and using the electronic component current unit purchase price and sales volume. (Note: Round the unit cost to two decimal places.) 13 Marks Suppose that ColdAs loses $4,000,000 in sales per year (hidden costs) because it develops a poor reputation due to defective units attributable to failed components. Using warranty hours, assign the hidden cost of lost sales to each supplier. By how much would this change the cost of each supplier's component? (Round to two decimal places.) 4 Marks Based on the analysis in requirements 1 and 2, calculate the revised total supplier-related activities cost per supplier. 4 Marks Use this revised total supplier-related activities cost per supplier as the basis to discuss why and how activity-based supplier costing is import for internal decision making, especially concerning which costs to use in determining the selection of a supplier. 4 Marks Calculate the cost per component for each supplier, taking into consideration the costs of the supplier-related activities and using the electronic component current unit purchase price and sales volume. (Note: Round the unit cost to two decimal places.) 13 Marks Suppose that ColdAs loses $4,000,000 in sales per year (hidden costs) because it develops a poor reputation due to defective units attributable to failed components. Using warranty hours, assign the hidden cost of lost sales to each supplier. By how much would this change the cost of each supplier's component? (Round to two decimal places.) 4 Marks Based on the analysis in requirements 1 and 2, calculate the revised total supplier-related activities cost per supplier. 4 Marks Use this revised total supplier-related activities cost per supplier as the basis to discuss why and how activity-based supplier costing is import for internal decision making, especially concerning which costs to use in determining the selection of a supplier. 4 Marks

Answer rating: 100% (QA)

To solve this problem well follow these steps 1 Calculate the cost per component for each supplier based on supplierrelated activities and using the electronic components current unit purchase price a... View the full answer