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

  What is the smallest expected loss in the coming year

DW Co. stock has an annual return mean and standard deviation of 11 percent and 34 percent, respectively. What is the smallest expected loss in the coming year with a probability of 5 percent?

  Devise a hypothetical business situation in which buying a

devise a hypothetical business situation in which buying a lookback call option on a commodity may be a sound strategy

  Make the appropriate tax adjustment for cost of debt

Russell Container Corporation has a $1,000 par value bond outstanding with 20 years to maturity. The bond carries an annual interest payment of $95.

  Please explain the features of cash management

Please explain the features of cash management. Also what are some of the options available to families with inadequate savings? Brief summary.

  How much additional short-term funding

If Mitchem expands its receivables and inventories using its short-term line of credit, how much additional short-term funding can it borrow befor its current ratio standard is reached?

  Construct a delta-neutral portfolio comprising positions

Suppose that you entered into a 3-month call contract with strike price of R90 and you have revised the volatility of ExxonMobil to 34%.

  Which of the following is considered an organizational

1.which of the following is considered a major process flow structure?2.iso audits result in certifications that are

  Calculate the monetary value for both the jobs

Bill Mason is considering two job offers. Job 1 pays a salary of $41,900 with $4,875 of nontaxable employee benefits. Job 2 pays a salary of $40,000 and $6,530.

  Provide at least three 3 reasons for believing in the

can you really trust your senses and the interpretation of sensory data to give you an accurate view of the world?

  What is the stock worth today

A stock growing at 30% for 8 years it levels off at 7%. The rate of return is 15%. What is the stock worth today.

  Difference between a corporation and all other organization

What is the most important difference between a corporation and all other organization forms?

  What was net capital spending for 2011

The company's 2011 income statement showed a depreciation expense of $385,000. What was net capital spending for 2011?

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