Supreme Furniture needs to purchase glass panes to make glass top coffee tables. Last year Supreme Furniture has two suppliers, Bobux and Twinkle, with the following supplier related information: Cost per unit of Number of activities Number of activities activity driver for Bobux Supplier related activities Returning poor quality glass panes $120 per pane 25 panes Processing purchase orders Receiving and inspecting deliveries $50 per delivery 15 deliveries Supplier audit Rework due to poor quality glass $100 per table 60 tables Purchase price per glass pane Number of glass panes purchased for Twinkle 12 panes 40 orders 15 deliveries 2 audits 15 tables $150 780 $20 per order 12 orders $1000 per audit 5 audits $100 446 Calculate the supplier performance index of Bobux (round your answer to 2 decimal places). Answer.

Supreme Furniture needs to purchase glass panes to make glass top coffee tables. Last year Supreme Furniture has two suppliers, Bobux and Twinkle, with the following supplier related information: Cost per unit of Number of activities Number of activities activity driver for Bobux Supplier related activities Returning poor quality glass panes $120 per pane 25 panes Processing purchase orders Receiving and inspecting deliveries $50 per delivery 15 deliveries Supplier audit Rework due to poor quality glass $100 per table 60 tables Purchase price per glass pane Number of glass panes purchased for Twinkle 12 panes 40 orders 15 deliveries 2 audits 15 tables $150 780 $20 per order 12 orders $1000 per audit 5 audits $100 446 Calculate the supplier performance index of Bobux (round your answer to 2 decimal places). Answer.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 2CE: Kaune Food Products Company manufactures canned mixed nuts with an average manufacturing cost of 52...

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Question

Supreme Furniture needs to purchase glass panes to make glass top coffee tables. Last year Supreme
Furniture has two suppliers, Bobux and Twinkle, with the following supplier related information:
Cost per unit of Number of activities Number of activities
activity driver for Bobux
Supplier related activities
Returning poor quality glass panes $120 per pane 25 panes
Processing purchase orders
Receiving and inspecting deliveries S50 per delivery 15 deliveries
Supplier audit
Rework due to poor quality glass $100 per table 60 tables
Purchase price per glass pane
for Twinkle
12 panes
40 orders
15 deliveries
2 audits
15 tables
$150
780
$20 per order 12 orders
$1000 per audit 5 audits
$100
Number of glass panes purchased
446
Calculate the supplier performance index of Bobux (round your answer to 2 decimal places).
Answer.

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