A specific model of computer servers are being sold by Company A for $26,700 each, offering trade discounts of 8% and 6% and by Company B for $35,500 each, offering trade discount rates of 13% and 3%. a. Which company offers the servers for a cheaper price? o A o B b. What further trade discount rate must the company with the higher price provide to match the lower price?

A specific model of computer servers are being sold by Company A for $26,700 each, offering trade discounts of 8% and 6% and by Company B for $35,500 each, offering trade discount rates of 13% and 3%. a. Which company offers the servers for a cheaper price? o A o B b. What further trade discount rate must the company with the higher price provide to match the lower price?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A wholesaler has obtained a consignment of dates worth RM 6,000 from a supplier. The manager is considering on the selling price to his distributors using two options. Option 1 is a 20% markup based on cost price and Option 2 is based on 20% markup based on retail price. a) Find the retail price based on Option 1 b)Find the retail price based on Option 2
. A retailer is considering the purchase of 100 units of a specific item from either of two suppliers. Their offers are as follows: A: $780 a unit, total of $78,000, 1/10, n/30, plus freight of $1,500. B: $800 a unit, total of $80,000, 2/10, n/30, no charge for freight. Which of the two offers, A or B, yields the lower price? Answer: ______________________________________________________________________ Explain your answer: ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
A computer sellsfor $860 plus GST and PST or HST. What is the price difference for consumers between British Columbia and Ontario?
company 1 sells a product for $24.30 with trade discount rates of 7% and 3%. company 2 sells the same product for $22.30 with two trade discount rates of 7% and 5%. a. Which company is offering it for a cheaper price? The company 1 The company 2 b. What further trade discount rate must the company with the higher price provide to match the lower price?
buying and sellingABC Company offers to fill an order for goods at P 25,800.00 less 25% and 25 %, terms n/30. On the other hand, XYZ Corporation offers P 25,000.00 less 35%, 3%, and 2%, terms 8/10, n/30: on the same order. Assuming that Mr Cruz will pay cash, which is the better offer?
A retailer is considering the purchase of 500 units of a specific item from either of two suppliers. Their offers are as follows:Supplier One: $40 a unit, total of $20,000, 1/10, n/30, no charge for freight.Supplier Two: $39 a unit, total of $19,500, 2/10, n/30, plus freight of $500.Which of the two offers, Supplier One or Supplier Two, yields the lower price?
Best Buy Entertainment can obtain Panasonic MP3 players for $134 less a trade discount of 35%. A comparable Samsung model is available for $127 less a discount of 30%.Which MP3 player has the lower net cost? How much lower? (Round your answer to the nearest cent.) Lower by = $
ABC company offers an item for RM 300 less 20% whilst XYZ company offers the same item for RM 320 less 40%. Find i. the net prices of the item offered by the two shops. ii. the further discount percentage that must be offered by the shop that sells at a higher net price in order to meet the competitor’s price.
_____ 1. If Moonton Company instructed Northern Vale Division to supply Iron Hooks to Mooniyan Division, how much is the maximum transfer price that they can consider? (Round off your final answer to 3 decimal places)_____ 2. Continuing from Question No.1, how much is the minimum transfer price that they can consider? (Round off your final answer to 3 decimal places)
Sur Travel Company intends to sell its customers a special round-trip airline ticket package to Salalah. The Company will be able to purchase the package from Oman Air for OMR 150 each. The round-trip tickets will be sold for OMR 200 each and the airline intends to reimburse Sur Travel for any unsold ticket packages. Fixed costs for Sur Travel include OMR 10,000 in advertising costs.How many ticket packages will Sur Travel need to sell to break even? a. 29 packages b. 200 packages c. 50 packages d. 67 packages
For all problems, round your final answer to the nearest cent. Do not round net price equivalent rates or single equivalent discount rates. Complete the following: LU 7-1(4) Net price equivalent discount rate (In dectmals) (n dechmals) Single equivalent discount rate List Chatn Trade Net Item price discount price 7-1. Surface computer $1,200 4/1 7-2. Samsung Blu-Ray player $199 8/4/3 7-3. Canon document scanner $269 7/3/1
(a) Superior Gifts sells corporate gift package in Sabah, and Superior Gift has 3 types of gift packages. The following are the information available. Standard Superior Executive Selling price per package (RM) Total variable cost (RM) | Monthly sales (packages) Fixed cost (RM) 120 90,000 1,200 150 250 74,700 30,000 900 300 20,000 18,000 12,000 Required: (1) Calculate the Contribution Margin for each type of gift package. (ii) Calculate the combined Contribution Margin for Superior Gift. (iii)Calculate the break-even point in TOTAL units to be sold. (iv)Calculate the number of each type of room to be sold in order to achieve break- even point. (v) Assume that sales of 3,000 is projected for the month of December 2020, calculate the projected profit for the month of December 2020. (b) Explain ANY TWO (2) assumptions of Cost-Volume-Profit (CVP) analysis.