Misemer Corporation is developing standards for its products. One product requires an input that is purchased for $57.00 per kilogram from the supplier. By paying cash, the company gets a discount of 8% off this purchase price. Shipping costs from the supplier's warehouse amount to $3.60 per kilogram. Receiving costs are $0.26 per kilogram. The standard price per kilogram of this input should be:
A) $57.70
B) $56.30
C) $65.42
D) $57.00

Question

Quizplus · Accepted Answer

The standard price per kilogram is calculated as follows: $57.00 - 8% discount + $3.60 shipping + $0.26 receiving = $56.30.

Misemer Corporation Is Developing Standards for Its Products