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
Selected: b. $56.30 This answer is correct.
c. $65.42
d. $57.00
Correct! Standard price is Purchase price $57.00 less cash discount $4.56 plus shipping costs from the supplier’s warehouse $3.60 plus receiving costs $.26 equals standard price per kilogram $56.30.