Answer Happy

Required information [The following information applies to the questions displayed below.] Kinnear Plastics manufactures various components for the aircraft and marine industry. Kinnear buys plastic from two vendors: Tappan Corporation and Hill Enterprises. Kinnear chooses the vendor based on price. Once the plastic is received, it is inspected to ensure that it is suitable for production. Plastic that is deemed unsuitable is disposed of. The controller at Kinnear collected the following information on purchases for the past year: Hill 7,000 350 Total purchases (tons) Plastic discarded Tappan 4,000 80 The purchasing manager has just received bids on an order for 160 tons of plastic from both Tappan and Hill. Tappan bid $1,470 and Hill bid $1,444 per ton.
Required: 1-a. Assume that the average quality, measured by the amounts discarded from the two companies, will continue as in the past. What is the effective cost per ton for both Tappan and Hill? (Do not round intermediate calculations.) Effective cost per ton Tappan Hill 1-b. Which supplier would you recommend that the purchasing manager select? Tappan Hill