3.A grain mill has two main locations. One in lowa and one in Illinois. Those two locationsship products to three intermediary locations in Kansas City, Omaha, and Iowa City.Those three locations ship to Chicago, St. Louis, and Louisville.The cost of shipping per ton from each location is as follows:Kansas City$16IowaIllinois$15ChicagoKansas City$6Omaha$7Iowa City$4Omaha$10Iowa City$12$14$17St LouisLouisville$8$10$11$11$5$12Iowa and Illinois both have a capacity of 300 tons.Chicago has a demand for 200 tons.St Louis has a demand for 100 tons.Louisville has a demand for 300 tons.Determine the Total minimum cost.Determine the amount of product going to each destination.

1) To solve this problem, we can use the transportation algorithm, specifically the North-West…

Answered: 3. A grain mill has two main locations.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Eastern division sells goods internally to the Western division of the same company. The quoted external price in industry publications from a supplier near Eastern is $200 per ton plus transportation. It costs $20 per ton to transport the goods to Western. Eastern's actual market cost per ton to buy the direct materials to make the transferred product is $100. Actual per ton direct labor is $50. Other actual costs of storage and handling are $40. Assuming there is an excess capcity in the Eastern Division, the minimum and maximum transfer price are:

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