Business Its Legal Ethical & Global Environment
10th Edition
ISBN: 9781305224414
Author: JENNINGS
Publisher: Cengage
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Diapers.com is an online specialty retailer for baby products (including diapers) that specialized in delivering consumables, such as diapers, wipes, and formula. Diapers.com was selling a pack of Pampers for $18 on its website, while same pack was acquired from P&G for $9. The % margin (percent of Diapers' selling price) is equal to
A. $9
B. 100%
C. 50%
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A school purchasing manager is seeking to buy tablets from either Entity A or Entity B and will pay shipping costs. The purchase price is $500 each. Entity A purchases the tablets from the manufacturer, Banana Industries (for $400). Entity A has the tablets shipped to its distribution center in Denver, and then ships them to schools when a sale is made. Entity A at times offers discounts to schools in accordance with its marketing strategy. On the other hand, Entity B sells tablets from a variety of manufacturers including Banana Industries. When a sale is made, Entity B remits the proceeds to the manufacturer, and retains a 10% commission (here $50). Entity B has no discretion as to the sales price. The manufacturer then ship the equipment to the customer.
For each arrangement, indicate how much revenue and gross profit should be recognized. Provide support for your answer from the ASC and cite the applicable provisions. You should cite like this: ASC 606-10-35-3(e) so we can find…
Jitsmart is a retailer of plastic action-figure toys. The action figures are purchased from Tacky Toys, Inc., and arrive in boxes of 48. Full boxes are stored on high shelves out of reach of customers. A small inventory is maintained on child-level shelves. Depletion of the lower-shelf inventory signals the need to take down a box of action figures to replenish the inventory. A reorder card is then removed from the box and sent to Tacky Toys to authorize replenishment of a container of action figures. The average demand rate for a popular action figure, Agent 99, is 36 units per day. The total lead time (waiting plus processing) is 11 days. Jitsmart’s safety stocky policy variable, α, is 0.25. What is the authorized stock level for Jitsmart?
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