What is the average unit cost of the order

Assignment Help Finance Basics
Reference no: EM132043677

Company X can purchase a certain component from either Supplier A or Supplier B. Supplier A offers an incremental quantity discount and charges $20 per unit for the first 2,000 units in an order, $18 per unit for the next 2,000 units in the order, and $14 per unit for any unit beyond in an order. Supplier B offers an all-unit quantity discount and charges $20 per unit for orders of no more than 3,000 units and $16 per unit for any bigger orders.

Suppose Company X decides to buy 8,000 units from Supplier A. What is the average unit cost of the order? Please provide at least one step of calculation and the correct answer for full credit.

If Company X wants to place an order of 8,000 units, which supplier offers a lower total cost. Provide the reason for full credit.

Reference no: EM132043677

Questions Cloud

What are the different types of environmental variables : What are the different types of environmental variables and its importance?
What are the four of positions in a hotel : What are the four of positions in a hotel? How does ADA impact the hotel industry?
The relationships did the people of ancient egypt have : In what ways was ancient Egypt influenced by contact with people from outside -- from Africa and Southwest Asia (the Middle East)?
What is the name of the parent and subsidiary firm : In the business world, firms acquire other companies all the time. What is the name of the Parent and Subsidiary firm. Was the acquisition successful
What is the average unit cost of the order : Suppose Company X decides to buy 8,000 units from Supplier A. What is the average unit cost of the order? Please provide at least one step of calculation
What do you think would be the main concerns : Think back to a natural disaster, such as Hurricane Matthew in 2016 or Hurricane Katrina in 2005. Which two specialized fields of toxicology do you think would.
What is the probability that a service call takes : a. What is the probability that a service call takes more than 30 minutes? (Be sure to indicate the relevant Z-score for the problem).
How could a song about rats be a protest against people : How could a song about rats be a protest against people, and what does the existence of this song suggest about ancient Chinese peasant life?
What are the three brackets of control : In the grand scheme of things, the entire subsidiary is not purchased. What are the three brackets of control

Reviews

Write a Review

Finance Basics Questions & Answers

  How much will company have in investment set-aside account

Pinpoint Laser Systems is planning to set aside $260,000 now for possibly replacing its 4-pole, 38-MW synchronous motors when it becomes necessary.

  What is the promised payment on the bond

A firm will be worth (next year) either $50, $100, or $150, with probabilities 1/3, 1/3, and 1/3, respectively. Assume that this type of firm has an overall.

  1 you have just been hired as a financial analyst for basel

1 you have just been hired as a financial analyst for basel industries. unfortunately company headquarters where all of

  By which percentage may the stock fall

Dr. Mary Rogowski opens a new margin account at Robinson and Hendricks brokerage firm, which requires a 65% initial margin and a 45% maintenance margin.

  Compute the dinar and rand spot rate from the data

This Mini Case is available in MyFinanceLab. For your job as an assistant cash manager at The Giordano Industries, you are asked to put together a series.

  What is acid-test

If Prodigy has a current ratio of 2.960, what is their Acid-Test (quick) ratio? (round to 2 decimal places)

  What are the lenders legal obligations

What are the Lender's legal obligations if they decline an application due to the content of the credit agency file - Explain how applying for a Low Doc Loan

  Kinetic energy of the rotational motion

A solid sphere with a uniform surface density is rolling over a plane. It's translational kinetic energy is 80J. What is the kinetic energy of the rotational motion and the total kinetic energy?

  A portfolio is created with a combination of face amount

bond 1 has a price of 88.35 and a macaulay duration of 12.7. bond 2 has a price of 130.49 and has a duration of 14.6.

  What is risk analysis and how do you apply it to it systems

What is risk analysis and how do you apply it to IT systems? What are enterprise systems and how do you perform risk analyses on them?

  Galactosidase present at all times

If the lac operon is repressed in the absence of lactose, why do E. coli cells have small amounts of lactose permease and beta-galactosidase

  What is the eoq for the mowers

Roybow Corporation sells lawn mowers that cost $160 each to purchase and prepare for sale. Annual sales are 5,000 mowers, carrying costs are 20 percent of inventory costs, and Roybow incurs a cost of $32 each time an order is placed.

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