Delivery services entered into contractual agreement

Assignment Help Financial Management
Reference no: EM132061194

FACTS: On January 1, 2015, Jackson Delivery Services entered into a three-year contractual agreement with Purple Rain Digital Company. Pursuant to the agreement, Jackson Delivery Services is required to deliver to all Best Buy stores on Tuesdays and Fridays of each week. Purple Rain Digital Company pays $1,000,000.00 per month to Jackson Delivery Services pursuant to the contract. Best Buy has a 10-year contract with Purple Rain Digital Company wherein pursuant to said contract, Best Buy pays Purple Rain Digital Company $15 million dollars a year for their products that are sold in exclusively in their stores. On October 1, 2015, a 30-day truck driver strike caused all delivery truck deliveries to cease for Jackson Delivery Services, so no deliveries were made. During the strike, Houston Delivery Services, aware of the strike, hired non-union drivers and contacted Purple Rain Digital Company to perform all deliveries during the strike only. On November 1, 2015, a day after the strike ceased, a severe snow storm caused a 30-day delay on all deliveries, meaning there were no deliveries in the month of November. On December 1, 2015, the roof at the Best Buy location at Arundel Mills Shopping Center collapsed and the store was closed until January 1, 2016. Therefore, between October 1, 2015 and December 31, 2015, no Purple Rain Digital Company products were sold. Answer this question/scenario in the I.R.A.C. format.

QUESTION NO. 1: You have been hired to represent Purple Rain Digital Company.

QUESTION NO. 2: You have been hired to represent Jackson Delivery Services.

QUESTION NO. 3: You have been hired to represent Best Buy.

QUESTION NO. 4: You have been hired to represent Houston Delivery Services.

QUESTION NO. 5: You have been hired to represent Arundel Mills Shopping

Reference no: EM132061194

Questions Cloud

What is the real risk-free interest rate : what is the real risk-free interest rate?
The real rate of interest and the inflation rate : What would you expect 1-year Treasury bills to return if you ignore the cross product between the real rate of interest and the inflation rate?
What was increase in real purchasing power associated : What was the increase in real purchasing power associated with both 3-month Treasury bills and 30-year Treasury bonds
Conviction about stock price future movements : What would be a simple options strategy to exploit your conviction about the stock price’s future movements?
Delivery services entered into contractual agreement : Jackson Delivery Services entered into a three-year contractual agreement with Purple Rain Digital Company.
What is the cost of this vacation in today dollars : What is the cost of this vacation in today's dollars, if the discount rate is 9 percent?
What is the monthly payment of the original loan : What is the monthly payment of the original loan? What is the monthly payment refinanced?
Evaluating two mutually exclusive investment projects : Kristy is evaluating two mutually exclusive investment projects (he can choose only one project).
Normally distributed with standard deviation : If its annual return is normally distributed with a standard deviation of 6.9 percent, what return can you expect the fund to beat 95 percent of the time?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd