11. Bolsa Co. estimates that 60,000 special zipper will be used in the manufacture of industrial bags during the next year. Sure Zipper Co. has quoted a price of P6 per zipper. Bolsa would prefer to purchase 5,000 units per month but Sure is unable to guarantee this delivery schedule. In order to ensure the availability of these zippers, Bolsa is considering the purchase of all 60,000 units at the beginning of the year. Assuming that Bolsa can invest cash at 12%, the company's opportunity cost of purchasing the 60,000 units are the beginning of the year is a. P21,600 b. P43,200 c. P19,800 d. P39,600

11. Bolsa Co. estimates that 60,000 special zipper will be used in the manufacture of industrial bags during the next year. Sure Zipper Co. has quoted a price of P6 per zipper. Bolsa would prefer to purchase 5,000 units per month but Sure is unable to guarantee this delivery schedule. In order to ensure the availability of these zippers, Bolsa is considering the purchase of all 60,000 units at the beginning of the year. Assuming that Bolsa can invest cash at 12%, the company's opportunity cost of purchasing the 60,000 units are the beginning of the year is a. P21,600 b. P43,200 c. P19,800 d. P39,600

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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