The Green Machine Manufacturing Company is trying to decide which of two suppliers to purchase engines from. Green Machine has agreed to cover the tooling cost for the supplier selected. The relevant information is provided below. Carry all calculations out to two decimal places. Order lot size 2,500 units
Annual demand 120,000 units
Engine weight 10 pounds
Order processing cost $100 / order
Inventory carrying rate 1% per year
Supplier 1 Supplier 2
Unit Price 1 to 999 units / order $315.00 $320.00
Unit Price 1000 to 2999 units / order $306.00 $309.00
Unit Price 3000 + units / order $300.00 $305.00
Tooling Cost $13,500 $10,750
Distance 110 miles 125 miles
Supplier defect rate (% of engine cost) 2% 1%
Truckload (TL ≥ 40,000 lbs.): $1.05 per ton-mile
Less-than-truckload (LTL): $1.75 per ton-mile
(Note: per ton-mile = 2,000 pounds per mile
What is the total cost of ownership for supplier 1 and 2?

rural residential development company and suburban real estate corporation form a joint stock company. the longest duration a joint stock company can be formed for is

Jordan, inc. sells fireworks. the company’s marketing director developed the following cost of goods sold budget for april, may, june, and july. april may june july budgeted cost of goods sold $62,000 $72,000 $82,000 $88,000 jordan had a beginning inventory balance of $3,000 on april 1 and a beginning balance in accounts payable of $14,600. the company desires to maintain an ending inventory balance equal to 15 percent of the next period’s cost of goods sold. jordan makes all purchases on account. the company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the month following purchase. required prepare an inventory purchases budget for april, may, and june. determine the amount of ending inventory jordan will report on the end-of-quarter pro forma balance sheet. prepare a schedule of cash payments for inventory for april, may, and june. determine the balance in accounts payable jordan will report on the end-of-quarter pro forma balance sheet.

Computing equivalent units is especially important for: (a) goods that take a relatively short time to produce, such as plastic bottles. (b) goods with sustainability implications in their production processes. (c) goods that are started and completed during the same period. (d) goods that take a long time to produce, such as airplanes.