Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

CruBrew uses 100 bags of whole bean coffee every month. Currently, CruBrew has signed a year-long contract to purchase its coffee beans from a domestic supplier (DS), located in the USA. IT costs $20 per bag to purchase from DS and the fixed cost for every delivery, independent of the order size, is $120. Due to increased demand by the conscious students on campus and driven by increasing social vidion of the coffee shop, CruBrew is also considering the possibility of purchasing from a fair trade supplier (FS), a cooperative located in Ivory Coast, West Africa. The contract with FS requires exactly two shipments per year. The price of coffee beans from FS is $25 per bag, and transportation cost per shipment is estimated to be $2000. A group of students coducted a survey and found that all the customers are willing to pay at least 10 cents more for a cup of Fair Trade coffee. They also learned from CruBrew administration that a bag of coffee beans yield about 200 cups of coffee, that the demand for coffee is stable throughout the year, and the estimated cost for inspection and storage is $1 per bag per year and the annual cost of capital is approximately 20%. Should CruBrew go with DS or FS? Why? Show calculations please.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M938019

Have any Question? 


Related Questions in Accounting Basics

A tomato farmer with a very large farm of approximately

A tomato farmer with a very large farm of approximately 2200 acres had heard about a new type of rather expensive fertilizer which would supposedly significantly increase his production. The frugal farmer wanted to test ...

Assignmentxyz corporation published the following financial

Assignment XYZ Corporation published the following financial statements at the end of the year: Assume the following: All discretionary accounts that are influenced by the policy decisions are identified by ** in the abo ...

This assignment will assess the following learning

This assignment will assess the following learning outcomes: - Demonstrate the impact on the financial statements and the implication for different users of accounts of alternative ways of treating controversial accounti ...

Assignment accounting qualitybased on the requirements of

Assignment: Accounting Quality Based on the requirements of the Sarbanes-Oxley Act and SEC reporting requirements for publically traded companies, Write a five page paper in which you: 1. Assess the roles of the Board of ...

Accounting discussionbulldiscuss the advantages of

Accounting Discussion • Discuss the advantages of understanding accounting as it relates to your current or future position. (Consider careers in management, sales, business operations, finance, and business ownership.)

Additional information1 the company during the year paid

Additional Information 1. The Company during the year paid AED 200,000 for security deposit and bank charges of AED 40. 2. The Warehouse reported inventory stock count of AED 286,500. 3. XYZ Company's confirmation ,( Cus ...

Accounting discussiona local movie theater owner explains

Accounting Discussion A local movie theater owner explains to you that ticket sales on weekends and evenings are strong, but attendance during the weekdays, Monday through Thursday, is poor. The owner proposes to offer a ...

Project assignmentdo investors react to stock

Project Assignment Do Investors React to Stock Dividends? Financial accounting theory predicts that there should be no market reaction to a company's stock dividend. This is because the market value of the shares should ...

Assignment1 government entity ccr 2 government entity power

Assignment 1.) Government Entity CCR 2.) Government Entity Power Point presentation Refer to www.agacgfm.org for information on the CCR. A CCR is a 4 page document summarizing information and creating a presentation for ...

District water company issued 10-year bonds with a face

District Water Company issued 10-year bonds with a face value of $100,000 and a stated interest rate of 8.0%. The bonds are dated April 1, 2016, and call for semiannual interest payments on each April 1 and October 1. Du ...

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen