Please answer and explain following questions. 6. (TCO 2) You place an order for

ID: 2697353 • Letter: P

Question

Please answer and explain following questions.

6. (TCO 2) You place an order for 100 units of inventory Part A at a unit price of $522. The supplier offers terms of 1/25, net 40. How much should you remit if you take the discount? (Points : 3)

a) $52,200

b) $39,150
c) $51,678
d) None of the above

7. (TCO 2) Auto Parts sells 1,600 electric parts per month and then reorders another 1,600 parts. If the relevant carrying cost per electric part is $4 and the fixed order cost is $650, what is the total carrying cost and the restocking cost, respectively? (Points : 3)             a) $6,400 and $33,800
            b) $3,200 and $33,800
            c) $6,400 and $7,800
            d) $3,200 and $7,800
            e) None of the above

Explanation / Answer

Hi,

Please find the answers as follows:

6) Total Amount Remitted =100*522 - 100*522*.01 = 51678 (Option C is correct)

7) Carrying Cost = 1600*4 = 6400/2 = 3200

Restocking Cost = 650*52 = 33800 (52 indicates the number of weeks)

Option B is correct.

8) EOQ = (2*6*12000/1.60)^.5 = 300 Units

Average Inventory = 300/2 = 150 Units

Option C is correct.

Thanks.

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Please answer and explain following questions. 6. (TCO 2) You place an order for

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