The following are summary statistics from last year's purchases from the two suppliers Kilda Toorak...
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The following are summary statistics from last year's purchases from the two suppliers Kilda Toorak Gravel corp 400 Number of loads 1e0 Average tons per load Average price per ton Number of initial inspections passed Number of delayed deliveries 10,000 5,000 $ 5.90 6.00 94 300 10 80 The sales manager of Kilda Corporation has proposed to the purchasing manager at RCC that KC be given an exclusive contract to supply the aggregate. Assume that the total annual demand remains the same. If it receives the contract, KC will deliver the aggregate in the same average-sized load as it does currently Required: a. If KC receives the exclusive contract, assume the load quality and delivery timeliness will remain the same as current experience What is the maximum price RCC should offer KC for the exclusive contract? (Round your final answer to 2 decimal places.) b. Suppose KC guarantees that no deliveries will be delayed or it will repay RCC for the costs associated with the delays. What is the maximum price RCC should offer KC for the exclusive contract? (Round your final answer to 2 decimal places.) Maximum price Maximum price per ton a per ton b
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