Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Ordering costs are $100 per order, and the carrying cost, as a percentage of inventory value, is 80 percent. The purchase price to CCC is $0.50 per gallon. Management currently orders the EOQ each time an order is placed. No safety stock is carried. The supplier is now offering a quantity discount of $0.03 per gallon if CCC orders 10,000 gallons at a time. Should CCC take the discount?

a. From a cost standpoint, CCC is indifferent.

b. No, the cost exceeds the benefit by $500.

c. No, the cost exceeds the benefit by $1,000.

d. Yes, the benefit exceeds the cost by $500.

e. Yes, the benefit exceeds the cost by $1,120.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M944096

Have any Question? 


Related Questions in Basic Finance

Suppose you are interested in taking a safari to kenta

Suppose you are interested in taking a safari to Kenta, Africa, next summer but are worried about the price of the trip, which has ranged from $2,500 to $3,500 over the past five years. The current price is $3,000. Suppo ...

Securitization has spread from mortgages to student loans

Securitization has spread from mortgages to student loans and credit card debt. However, few loans to businesses have been securitized. Explain why.

Consider the ar3 modeland suppose that the observed data

Consider the AR(3) model and suppose that the observed data are where {e t } and {a t } are independent and the initial values of x j  with j ≤ 0 are independent of et and at for t > 0. (a) Convert the model into a state ...

You want to have an 80000 college fund in 14years how much

You want to have an$ 80,000 college fund in 14years. How much will you have to deposit now under the scenario below. Assume that you make no deposits into the account after the initial deposit. An APR of 6%compounded dai ...

Explain the differences between the actuarial and economic

Explain the differences between the actuarial and economic approaches to accounting for pensions on company balance sheets.

Impact of monetary policy on cost of capital explain the

Impact of Monetary Policy on Cost of Capital : Explain the effects of a stimulative monetary policy on a firm's cost of capital.

1 what are the transaction costs ie difference between bid

1. What are the transaction costs (i.e., difference between bid and asked prices) for 10,000,000 of 3-month, 6-months and 12-months T-Bills? Use exact days to maturity for each T-Bill. For each maturity, show all the det ...

Question 1nbsp a cost of living rider that you purchase as

QUESTION 1   A cost of living rider that you purchase as part of your insurance life insurance policy gives you the option to buy additional insurance coverage to compensate for inflation. True False QUESTION 2  Riders t ...

Your client has been given a trust fund valued at 1 million

Your client has been given a trust fund valued at $1 million. She cannot access the money until she turns 68 years old, which is in 12 years. At that time, she can withdraw $30,000 per month. If the trust fund is investe ...

1 what are the functions of working capital2 what is

1. What are the functions of working capital? 2. What is concentration banking? 3. Why are cash inflow, inventory turnover and maturity composition of debts factors that determine the level of liquid assets? 4. What is t ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate