Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

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.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92880326
  • Price:- $10

Priced at Now at $10, Verified Solution

Have any Question?


Related Questions in Basic Finance

Discussion your initial discussion thread is due on day 3

Discussion: Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your r ...

What methods will you use to effectively manage

What methods will you use to effectively manage expectations for a project. There are many different types of stakeholders on a project. Do their expectations differ? How can you work to ensure that the project does not ...

What are the different types of survey research error and

What are the different types of survey research error and describe an example of each.

Quality home made ice cream has plans to pay decreasing

Quality Home Made Ice Cream has plans to pay decreasing annual dividends of $1.50, $1.25, and $1.00 over the next three years, respectively. After that, the firm will increase the dividend by 4% each year. What is the va ...

Why might a firm announcing it will borrow more be taken as

Why might a firm announcing it will borrow more be taken as a good news signal?

In capital budgeting for a multinational company the

In capital budgeting for a multinational company, the starting discount rate to which risks stemming from foreign exchange and political factors can be added, and from which benefits reflecting the parent's lower capital ...

You are a new financial analyst for acme bank and funeral

You are a new financial analyst for Acme Bank and Funeral Directors (they decided to diversify). Anyway you are looking at the following for a company you are considering for a loan. Sales = $650,000, their operating pro ...

A few years ago simon powell purchased a home for 250000

A few years ago, Simon Powell purchased a home for $250,000. Today, the home is worth $450,000. His remaining mortgage balance is $200,000. Assuming that Simon can borrow up to 70 percent of the market value, what is the ...

In terms of secondary data analysis what is behavioral

In terms of secondary data analysis, what is "behavioral targeting," and why has it become so important to marketers today? Why is it controversial?

Please show all work use of formula etcyou have just joined

Please show all work (use of formula, etc) You have just joined the investment banking firm of Danny, Chatman, and Howard. They have offered you two different salary arrangements. You can have $80,000 per year for the ne ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As