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Activity Cost II Supplier Data -Refer to Tigra Company

question 65

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Activity Cost  Inspecting comp onents (sampling only)  $190,000 Reworking products (due to failed component)  $2,254,000 Warranty work (due to failed component)  $1,723,000\begin{array} { l l } \text { Inspecting comp onents (sampling only) } & \$ 190,000 \\\text { Reworking products (due to failed component) } & \$ 2,254,000 \\\text { Warranty work (due to failed component) } & \$ 1,723,000\end{array} II. Supplier Data  Supplier 1 Supplier 2 Units Purchase Price $10.00$8.95 Units Purchased 22,50052,500 Sampling Hours 502,450 Rework Hours 1353,625 Warranty Hours 4756,000\begin{array}{lrr}&\text { Supplier } 1 &\text { Supplier } 2\\\text { Units Purchase Price } & \$ 10.00 & \$ 8.95 \\\text { Units Purchased } & 22,500 & 52,500 \\\text { Sampling Hours } & 50 & 2,450 \\\text { Rework Hours } & 135 & 3,625 \\\text { Warranty Hours } & 475 & 6,000\end{array}
-Refer to Tigra Company. Suppose that the company loses $2,500,000 in sales per year because of its reputation for defective units attributable to failed components. Using warranty hours, assign the proportional cost of lost sales to Supplier 1. What would be the additional cost per unit as a result of the lost sales?

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Definitions:

Waste Management Firm

A company that specializes in the collection, transport, processing, recycling, or disposal of waste material.

Environmental Organizations

Groups dedicated to protecting the environment and advocating for sustainable practices and policies to maintain ecological balance.

Unimodal

Unimodal indicates a distribution with a single peak or mode, showing one prevalent value among the data set.

Frequency

The number of times a particular value or category occurs in a data set, often displayed in tables or charts.

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