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- Purchase Discounts It is typically beneficial for companies to take advantage of early-paymentdiscounts allowed on purchases made on credit. To see why this is the case, determine the effectiverate of interest associated with not taking advantage of the early-payment discount for each of thefollowing situations. Assume in each case that payment is made on the 30th day of the billing cycle.Required1. What is the opportunity cost of not taking advantage of the discount associated with purchases madeunder the following terms: 2/10, n/30? (Show calculations.)2. What is the opportunity cost of not taking advantage of the discount associated with purchases madeunder the following terms: 1/10, n/30? (Show calculations.)3. To motivate managers to take early-payment discounts, what is the appropriate accounting treatment forpurchase discounts?Ownership of Inventory Explain the implications relating to ownership when goods are: a. In transit (FOB) Shipping Point b. In transit (FOB) Destination c. On ConsignmentProper deatailed Solution
- Discuss the role of following on MRP of Dell, Macdonalds and WalmartMaster ScheduleBill of MaterialInventory Recordchapter 4 7. On April 2, merchandise costing $15,400 reaches the retailer located in New Orleans. The invoice is dated March 22 and has terms of 8/10 EOM. The invoice is paid on April 10. How much should be remitted? (Present your answer with a comma separator, dollar-sign, and rounded to the penny (i.e. $1,234.56).)Henrietta wrote a check 1o Belk for $948 she knew her checking account had less than $36 and that she would'Y be making another deposit for weeks, Whichcrime. If any, has Henrietta commited in at least some jurlsdictions?
- Budd, the purchasing agent of Lake Hardware Wholesalers, has a relative who owns aretail hardware store. Budd arranged for hardware to be delivered by manufacturersto the relative’s retail store on a COD basis, thereby enabling his relative to buy atLake’s wholesale prices. Budd was probably able to accomplish this because of Lake’spoor internal control over(1) purchase requisitions. (3) cash receipts.(2) purchase orders. (4) perpetual inventory records.The principle from the case of Partridge v Crittenden is: Select one: a. Advertisements in a magazine can be accepted b. Advertisements in a magazine amount to an offer c. Advertisements in a magazine amount to an acceptance d. Advertisements in a magazine amount to an invitation to treatMr. Malakas deposited P5 000 on the day his son was born. If the money is worth 12% compounded quarterly, how much money will his son have on his 21st birthday?
- Pricing Decisions at Madison The Madison Company manufactures and retails a certain product. The company wants to determine the price that maximizes its profit from this product. The unit cost of producing and marketing the product is 50. Madison will certainly charge at least 50 for the product to ensure that it makes some profit. However, there is a very competitive market for this product, so that Madisons demand falls sharply when it increases its price. How should the company proceed?2 In the pricing model in Example 7.1 with the constant elasticity demand function, the assumption is that all units demanded are sold. Suppose the company has the capacity to produce only 200 units. If demand is less than capacity, all of demand is sold. If demand is greater than or equal to capacity, only 200 units are sold. Use Solver to find the optimal price and the corresponding profit. Then use SolverTable to see how sensitive these answers are to the production capacity, letting it vary from 170 to 230 in increments of 10. Discuss your findings relative to the original solution in Example 7.1. In other words, what is the effect of capacity on the optimal price and profit?1. Select the rule which determines the quantity of a rice which a consumer will demand.a) Continue to buy so long as there is no consumer surplus.b) Stop buying rice at the level of demand where the consumer surplus rises above the market price.c) Stop buying rice at the level of demand where the marginal utility falls to the price of rice.d) Continue to buy so long as demand for rice is price elastic. 2. In which of these situations might moral hazard arise?a) Insurance companies fail to calculate the risks of accident correctly.b) A company receives an exemption from pollution control legislation.c) A sports team accepts bribes which affect their performance in a game.d) A group of households makes a collective purchase of flood insurancePlease do not give solution in image format thanku You are responsible for insuring that 5100 finished goods are delivered to the new store in Springfield, MO. However, you are also aware of the following statistics: Expected theft within the warehouse prior to shipping: 0.5% Expected damages as a result of transportation: 1.8% How many finished goods should you plan on shipping so that, even with the theft and damages, you will have at least 5100 items in Springfield, MO?