The following nformation applies to the questions displayed below JFI Foods prod
ID: 341179 • Letter: T
Question
The following nformation applies to the questions displayed below JFI Foods produces processed foods. Its basic ingredient is a feedstock that is mixed with other ingredients to produce the final packaged product JFl purchases the feedstock from two suppliers, Rex Materials and Red Oak Chemicals The quality of the final product depends directly on the quality of the feedstock. If the feedstock is not correct, JFI has to dispose of the entire batch. All feedstock in this business is occasionally "bad," so JFlI measures what it calls the 'yield," which is measured as, Yield = Good 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 Data on the two suppliers for the past year follow yield of 80 percent = 8 tons of output ÷ 10 tons of feedstock) Rex Materials 1.350 1242 $ 180 Red Oak Chemicals Total inputs purchased (tons) Good outout (tons) Averoge price (per ton) 2,250 1518 Total 3.600 2790 $ 140 155 Required information 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 is considered? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Rex Materials d Oak C Effective price per tonExplanation / Answer
$ 243,000
(1350 * 180)
$ 315,000
(2250 * 140)
Rex Materials Rex Oak Chemicals Input Purchase Cost (A)$ 243,000
(1350 * 180)
$ 315,000
(2250 * 140)
Good Out Put (Tons) (B) 1,242 1,548 Effective Price Per Ton (C = A/B) $ 195.65 $ 203.49Related Questions
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