Fashion ClothiersAssume that Fashion Clothiers Inc. uses 1,440,000 metres of material each year. Further, assume that Fashion can order the material at a cost of $2 per metre, plus fixed ordering costs of $100 per order. The firm's carrying cost is 20% of the inventory value, at cost.
-Refer to Scenario: Fashion Clothiers.Now,suppose the manufacturer offers a discount of 0.5% for orders of a least 40,000 metres.Should Fashion Clothiers increase its ordering quantity to take the discount?
A) Yes; it will save $827 if it takes the discount.
B) No; it will lose $827 if it takes the discount.
C) Yes; it will save $13,573 if it takes the discount.
D) No; it will lose $13,573 if it takes the discount.
Correct Answer:
Verified
Q97: BC PrintsBC Prints expects to have sales
Q98: AberwaldAberwald Corporation expects to order 126,000 memory
Q99: AberwaldAberwald Corporation expects to order 126,000 memory
Q100: Crystal Clear Company purchases 50,000 litres of
Q101: AberwaldAberwald Corporation expects to order 126,000 memory
Q103: AberwaldAberwald Corporation expects to order 126,000 memory
Q104: Ontario Corp.Assume that Ontario Corp. has sales
Q105: Which best describes why firms maintain float?
A)Float
Q106: Which best describes the benefits of a
Q107: Assume that BC Corp has sales of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents