Tigra Company manufactures engines. Tigra produces all the parts necessary for its engines except for one electronic component, which is purchased from two local suppliers: Customer 1 and Customer 2. Both suppliers are reliable and rarely deliver late; however, Customer 1 sells the component for $10.00 per unit and Customer 2 sells the same component for $8.95. Hamilton purchases 70% of its components from Customer 2 because of the lower price. The total annual demand is 75,000 units.
I. Activity Data
II. Supplier Data
-Refer to the Figure.What is the activity rate for reworking products on the basis of rework hours?
A) $595 per hour
B) $599 per hour
C) $602 per hour
D) $605 per hour
Correct Answer:
Verified
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