Should ccc take the discount

Assignment Help Finance Basics

Reference no: EM13290600

Aqua Pure purchases 50,000 gallons of distilled water each year. Ordering costs are $100 per order, and the carrying cost, as a percentage of inventory value, is 80 percent. The purchase price to CCC is $0.50 per gallon. Management currently orders the EOQ each time an order is placed. No safety stock is carried. The supplier is now offering a quantity discount of $0.03 per gallon if CCC orders 10,000 gallons at a time. Should CCC take the discount? WHY?

Reference no: EM13290600

Questions Cloud

Explain what about the addition of phenacetin : What effect did the addition of acetanilide have on the melting point of the unknown component. What about the addition of phenacetin

What is tapering on unemployment in usa : What is tapering on unemployment in USA?

What is your total dollar return on this investment : Four months ago, you purchased 1,300 shares of Lakeside Bank stock for $23.32 a share. You have received dividend payments equal to $.66 a share. Today, you sold all of your shares for $24.32 a share. What is your total dollar return on this inves..

Determine electrons and holes have a saturation velocity : for a Si conductor of length 5um, doped n-type at 10^15 cm^-3,calculate the current density for an applied voltage of 2.5 Vacross its legth. how about for a voltage of 2500V the electronand hole mobilities are 1500 cm^2/V-s and 500 cm^2/V-s,respec..

Should ccc take the discount : The supplier is now offering a quantity discount of $0.03 per gallon if CCC orders 10,000 gallons at a time. Should CCC take the discount? WHY?

Explain crystallization and extraction techniques aid : Briefly discuss how the solubility, crystallization and extraction techniques aid one in separation of the components of "Panacetin".

Which room is has a higher peak temperature : So you have two different systems both equal contained in a case with the same volume and area. Both cases are in two separate rooms of the same area and volume. Which room is has a higher peak temperature

Operate over earth-mars distances for data transmission : Design a two-way radio link to operate over earth-Mars distances for data and picture transmission with a Mars probe at 2.5Ghz with a 5-MHz bandwidth. A power of10-19 W Hz-1 is to be delivered to the earth receiver and 10-17 WHz-1 to the Mars rece..

Should the cbc hire celebrities for movies : Use data from all networks, not just CBC movies and how well does this regression analysis explain the ratings?

User Account

All Pages