The following information applies to the questions displayedbelow.] JFI Foods produces processed foo

The following information applies to the questions displayedbelow.] JFI Foods produces processed foods. Its basic ingredient is afeedstock that is mixed with other ingredients to produce the finalpackaged product. JFI purchases the feedstock from two suppliers,Rex Materials and Red Oak Chemicals. The quality of the finalproduct depends directly on the quality of the feedstock. If thefeedstock is not correct, JFI has to dispose of the entire batch.All feedstock in this business is occasionally “bad,” so JFImeasures what it calls the “yield,” which is measured as, Yield = Good output ÷ Input where the output and inputs are both measured in tons. As abenchmark, JFI expects to get 15 tons of good output for every 20tons of feedstock purchased for a yield of 75 percent (= 15 tons ofoutput ÷ 20 tons of feedstock). Data on the two suppliers for the past year follow:     5. value:
4.00 points Required information Required: Assume that the average quality, measured by the yield, andprices from the two companies will continue as in the past. What isthe effective price for feedstock from the two companies whenquality is considered? (Round intermediate calculations andfinal answers to 2 decimal places.) Effective price per ton for Rex Materials is? and for Red oakChemicals? b. The sales manager of Red Oak Chemicals has proposed to thepurchasing manager at JFI that Red Oak be given an exclusivecontract to supply the feedstock. If it receives the contract, RedOak will guarantee an 75 percent yield on the feedstock itsupplies. Required: b. Assume that the average quality, measured bythe yield, and prices from the two companies will continue as inthe past. What is the maximum price for feedstock that JFI shouldbe willing to pay Red Oak under the exclusive contract?(Round intermediate calculations and final answer to 2decimal places.) Maximum price per ton is? . . .

 

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