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Hult Games buys electronic components for manufacturing from two suppliers, Milan Components and Dundee Parts

Accounting

Hult Games buys electronic components for manufacturing from two suppliers, Milan Components and Dundee Parts. If
the components are delivered late, the shipment to the customer is delayed. Delayed shipments lead to contractual
penalties that call for Hult to reimburse a portion of the purchase price to the customer. During the past quarter, the purchasing and delivery data for the two suppliers showed the following. Hilan Dundee Total
Total purchases (cartons) 84,888 35,8138 126,868
Average purchase price (per carton) $ 21.BB $ 23 $ 21.68
Number of deliveries 39 29 1B8
Percentage of late deliveries 2595 1895 22% The Accounting Department recorded $429,700 as the cost of late deliveries to customers. Required: Assume that the average quality, measured by the percentage of late deliveries, and prices from the two companies Will continue as In
the past. What is the effective price for components from the two companies when late deliveries are considered? {Do not round Intermediate calculations. Round your answers to 2 decimal places] M?an Dundee

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