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Required information. [The following information applies to the questions displayed below.) Rex Metal Fabricators (RMF) buys scrap metal and produces components for buildings and other structures. The purchase contracts specify an average quality level of 89 percent. That is, 89 percent of the metal must be ready for use without further processing. Metal that is not ready can be treated at extra cost by RMF, and this is more cost-effective than scrapping the metal and purchasing additional amounts. The cost of treating the metal requiring further processing is $80 per ton. RMF uses two suppliers: Chopin Yards and Joe Company. During the past year, the purchasing quality data were as follows: Total purchases (tons) Average purchase price (per ton) Percentage requiring further processing Required: Chopin Yards 1,700 $\ 124.00$ 3.0 Joe Company 1,100 $\ 122.00$ 8.0 Total 2,800 $\ 123.21$ 5.0 Assume that the average quality, measured by the percentage of metal purchases requiring further processing, and prices from the two companies will continue as in the past. What is the effective price for metal from the two companies when quality is considered? Note: Round your answers to 2 decimal places. Effective Cost per Ton Chopin Yards Joe Company

          Required information.
[The following information applies to the questions displayed below.)
Rex Metal Fabricators (RMF) buys scrap metal and produces components for buildings and other structures. The purchase
contracts specify an average quality level of 89 percent. That is, 89 percent of the metal must be ready for use without
further processing. Metal that is not ready can be treated at extra cost by RMF, and this is more cost-effective than
scrapping the metal and purchasing additional amounts. The cost of treating the metal requiring further processing is $80
per ton.
RMF uses two suppliers: Chopin Yards and Joe Company. During the past year, the purchasing quality data were as
follows:
Total purchases (tons)
Average purchase price (per ton)
Percentage requiring further processing
Required:
Chopin Yards
1,700
$\ 124.00$
3.0
Joe Company
1,100
$\ 122.00$
8.0
Total
2,800
$\ 123.21$
5.0
Assume that the average quality, measured by the percentage of metal purchases requiring further processing, and prices from the
two companies will continue as in the past. What is the effective price for metal from the two companies when quality is considered?
Note: Round your answers to 2 decimal places.
Effective Cost
per Ton
Chopin Yards
Joe Company

Required information.
[The following information applies to the questions displayed below.)
Rex Metal Fabricators (RMF) buys scrap metal and produces components for buildings and other structures. The purchase
contracts specify an average quality level of 89 percent. That is, 89 percent of the metal must be ready for use without
further processing. Metal that is not ready can be treated at extra cost by RMF, and this is more cost-effective than
scrapping the metal and purchasing additional amounts. The cost of treating the metal requiring further processing is 80
per ton.
RMF uses two suppliers: Chopin Yards and Joe Company. During the past year, the purchasing quality data were as
follows:
Total purchases (tons)
Average purchase price (per ton)
Percentage requiring further processing
Required:
Chopin Yards
1,700 124.003.0
Joe Company
1,100 122.008.0
Total
2,800 123.215.0
Assume that the average quality, measured by the percentage of metal purchases requiring further processing, and prices from the
two companies will continue as in the past. What is the effective price for metal from the two companies when quality is considered?
Note: Round your answers to 2 decimal places.
Effective Cost
per Ton
Chopin Yards
Joe Company

Added by Joaquin O.

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