Price-quantity discount table

Assignment Help Finance Basics
Reference no: EM131611103

Acme Company has sells a product that has an annual demand of 180 units. Ordering cost is $20.00 per order, and annual inventory cost is 25%. The product can be purchased from a supplier to using the following price-quantity discount table:

Order size

Discount

Unit Cost (net of discount)

0 to 49

0%

$30.00

50 to 99

5%

$28.50

100 or more

10%

$27.00

1. Assume that the current inventory policy of the company is to order once per month. What is the total inventory cost (holding + ordering + purchase) at this current practice?

What recommendation would you give to Acme regarding its current ordering policy - keep ordering at the same level, or change the order size? Provide support to your answer. Be as clear and as specific in your analysis.

How do I calculate the holding costs on this problem?

Reference no: EM131611103

Questions Cloud

Calculate bb current cash conversion cycle : Calculate BB's current cash conversion cycle. BB currently uses 3,000 ingots of aluminum each year to manufacture bracelet blanks.
What is the definition of homicide : What is the definition of homicide. What distinctions can be made about different types of homicide. Compare and contrast the criteria
Analyze the facebook page of jacob smith : At least three of the theories we explored in this module. Use the theories to describe what you learned about Jacob.
Explain position and content of your sources to your reader : Do not let your sources speak for you. Rather, you should explain the position and content of your sources to your reader in order to support your argument.
Price-quantity discount table : Acme Company has sells a product that has an annual demand of 180 units. Ordering cost is $20.00 per order, and annual inventory cost is 25%.
Discuss balance between rights and liberties : Supreme Court was able to strike a balance between rights and liberties on one hand and the interest in criminal investigation
Raise additional debt at this rate today : Capital Budgeting Analysis You have been asked to evaluate a potential acquisition of a smaller privately owned competitor.
Prepare the journal entries in the records of peewee ltd : ACC210 Major Assignment. Prepare the journal entries in the records of Peewee Ltd to record the events for the year ended 30 June 2017
Discuss acts of terrorism : What are the ethics of detaining individuals without due process before they have committed any acts of terrorism

Reviews

Write a Review

Finance Basics Questions & Answers

  Distinguish between the real and nominal interest rates

Explain how and why the components of aggregate expenditure depend on the real interest rate.-Distinguish between the real and nominal interest rates.

  Determine the processing sequence at the first work center

a. Determine the processing sequence at the first work center using each of these rules: (1) First come, first served, (2) Slack per operation. b. Compute the effectiveness of each rule using each of these measures: (1) average completion time, (2) a..

  Problem regarding the security considersations

After reading the two articles on Security (a particular type of risk) for this session, choose one of the ERP modules listed below and identify 1 potential risk and needed control. Employ terminology gained in your readings.

  Famas llamas has a wacc of 105 the companys cost of equity

famas llamas has a wacc of 10.5. the companys cost of equity is 14 and its cost of debt is 8. the tax rate is 30. what

  What is the present value of an annuity of 3n payments

What is the present value of an annuity of 3n payments of $R in terms of the present value of the annuity of n payments?

  A company pays a dividend a 2 per share d02 it is

a company pays a dividend a 2 per share d02. it is estimated that the companys dividend will grow at a rate of 20 for

  What is an asset impairment

What is an asset impairment? Describe the two-step process for recording impairments. How does recording an impairment loss affect the income statement.

  Calculate the real present value

A project anticipates net cash flows of $10,000 at the end of year one, with such amount increasing at the expected 5 percent rate of inflation over the subsequent four years.

  Problem on valuing callable bonds

Illinois Industries has decided to borrow money by issuing perpetual bonds with a coupon rate of 6.0 percent, payable annually. The one-year interest rate is 6.0 percent. Next year, there is a 45 percent probability that interest rates will increa..

  Explain basic micro loan program

Discuss and explain the advantages and disadvantages of each of following programs in terms of complexity of application and protection in the event of a default:

  Golden parachutes to executive

Discuss the concept of granting "Golden parachutes to executives". Explain how this practice could be in line with shareholders' best interests. Do you see how this practice could possibly be taken advantage of by the executives?

  Examine the influence of the basics of finance

FIN 571- Explain the role of market pressures on unethical behavior. Examine the influence of the basics of finance and how the Sarbanes-Oxley Act of 2002 changed things.

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