Bosco company has two suppliers: Gillian and Miles. The cost of warranty work due to defective components is $800,000. The total units repaired under warranty are 100,000 units, of which 90,000 have components from Gillian and 10,000 have components from Miles. Which of the following statement/s is/are true? i. Components purchased from Gillian cost $720,000 more than their purchased price. ii. Components purchased from Miles cost $100,000 more than their purchased price. i. Miles is the better supplier in regard to the quality delivered. iv. Gillian is the better supplier in regard to the quality delivered.

Bosco company has two suppliers: Gillian and Miles. The cost of warranty work due to defective components is $800,000. The total units repaired under warranty are 100,000 units, of which 90,000 have components from Gillian and 10,000 have components from Miles. Which of the following statement/s is/are true? i. Components purchased from Gillian cost $720,000 more than their purchased price. ii. Components purchased from Miles cost $100,000 more than their purchased price. i. Miles is the better supplier in regard to the quality delivered. iv. Gillian is the better supplier in regard to the quality delivered.

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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