Russell Company Uses Beltran Company and Southern Express Inc

question 39

Essay

Russell Company uses Beltran Company and Southern Express Inc.to buy the electronic chip used in the manufacturing of its GPS device.Russell Co.has been using these two companies for several years and would like to cut down to only one supplier to purchase the 1,200,000 chips needed per year.In order to determine which supplier is the most cost effective Russell Co.compiled the following data:
Required:
A.Calculate the activity rate for each activity.Round your answer to two decimal places.
B.Calculate the cost per chip for each supplier.
C.Which supplier should Russell Company choose?

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Definitions:

Obtain Data

The process of collecting information or measurements relevant to a particular question or problem.

Inferential Statistics

The branch of statistics focused on drawing conclusions and making predictions about a population based on a sample.

Average GPA

The calculated mean of grade point averages from a group of students, representing the average academic achievement.

Rites of Passage

Ceremonies or rituals marking important transitional periods in a person's life, such as birth, puberty, marriage, and death.