A specific model of computer servers are being sold by Company A for $26,900 each, offering trade discounts of 8% and 5% and by Company B for $35,800 each, offering trade discount rates of 13% and 3%. a. Which company offers the servers for a cheaper price? A B b. What further trade discount rate must the company with the higher price provide to match the lower price? 0.00 %

A specific model of computer servers are being sold by Company A for $26,900 each, offering trade discounts of 8% and 5% and by Company B for $35,800 each, offering trade discount rates of 13% and 3%. a. Which company offers the servers for a cheaper price? A B b. What further trade discount rate must the company with the higher price provide to match the lower price? 0.00 %

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 10MC

See similar textbooks

Similar questions

Anselmo’s Engineering buys circuit boards with a list price of $32,000. If the supplier extends trade discounts of 42/32/12, what is the trade discount amount?
ABC company offers an item for RM 300 less 20% whilst XYZ company offers the same item for RM 320 less 40%. Find i. the net prices of the item offered by the two shops. ii. the further discount percentage that must be offered by the shop that sells at a higher net price in order to meet the competitor’s price.
# You can buy a product from one of three companies. Company A for $3,200 with a trade discount of 30%, Company B for $2,900 with a trade discount of 20% and 10%, or Company C for $3,450 with a trade discount of 20%, 15%, 5%. Which company has the lowest net price?
A wholesaler has obtained a consignment of dates worth RM 6,000 from a supplier. The manager is considering on the selling price to his distributors using two options. Option 1 is a 20% markup based on cost price and Option 2 is based on 20% markup based on retail price. a) Find the retail price based on Option 1 b)Find the retail price based on Option 2
A computer was put on sale by the store owner. A trade discount of 30% is given to any buyer but still, the store will realize 25% margin. If the computer has a tag price of P41, 550, What should be its cost?
Anselmo's Engineering buys circuit boards with a list price of $32,000. If the supplier extends trade discounts of 42/32/12, what is the trade discount amount? a. $16,835.25 b. $15,170.00 c. $18,415.00 d. $20,893.70
Ace Hardware buys brushes at a wholesale price of PhP 380 each. If the selling price is PhP 627, what is the markup rate?
Sharma Kennels buys some items with a list price of $4,100. The supplier extends a 40% trade discount rate. What is the net price (in $)?
Maximum Inc. (retailer) has a loyalty program that rewards its customers one point per $1 spent. Points are redeemable for $0.20 off future purchases. A customer purchases products (cost of $280) for cash at the usual selling price of $400 and earns 400 points redeemable for $80 off future purchases of goods or services. The retailer expects redemption of 360 points or 90% of points earned. a.) How should the transaction price be allocated among the performance obligation(s)?Note: Round each allocated transaction price in the table below to the nearest dollar. b. Prepare Maximum’s journal entry to record the $400 sale to the customer where the customer earned 400 loyalty points.
Companies that advertise “rent-to-own” dealsare sometimes criticized by consumer advocates for thehigh interest costs built into their rent-to-owncontracts. Rent-A-Center is currently offering a SonyPlayStation 5 Console - Disc Model for $34.99 a weekfor 49 weeks. Alternatively, the “Same as Cash Price” is$1,028.71. What is the APR for Rent-A-Center’s deal?To solve this problem, you must use a financial calculator, Excel, or a TVM calculatorwebsite. What is the effective annual rate for the deal?
Leo Consulting enters into a contract with Highgate University to restructure Highgate’s processes for purchasing goods from suppliers. The contract states that Leo will earn a fixed fee of $66,000 and earn an additional $13,000 if Highgate achieves $130,000 of cost savings. Leo estimates a 70% chance that Highgate will achieve $130,000 of cost savings. Assuming that Leo determines the transaction price as the expected value of expected consideration, what transaction price will Leo estimate for this contract? Transaction price for the contract ?
Suppose you are the purchasing manager for a company that manufactures scanners and other computer peripherals. Your vendor for scanner motors is now offering "quantity discounts" in the form of instant rebates and lower shipping charges as follows. Quantity Net Price Rebate Shipping 1–500 motors $16 none $1.50 501–1,000 motors 16 $1.30 1.10 1,001–2,000 motors 16 1.90 0.80 (a) Calculate the cost of the motors, including shipping charges, for each category (in $). 1–500 motors$ 501–1,000 motors$ 1,001–2,000 motors$ (b) If you usually purchase 400 motors per month, what percent would be saved per motor by ordering 800 every two months? Round to the nearest tenth of a percent. % (c) What percent would be saved per motor by ordering 1,200 every three months? Round to the nearest tenth of a percent. % (d) How much money (in $) can be saved in a year by purchasing the motors every three months instead of every month? $ (e) What other factors besides price…