P5.40/order Ave. lead time on pur Maximum lead time oint for Triplo TInc

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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8. Triple T Inc. sells 100,000 tea bags a year. Other data are as follows:
Selling price/bag
Purchase cost/bag
P2.50
20% of unit cost
Carrying cost
Operating days per year
Ave. lead time on purchases
P1.50
250
Ordering cost
P5.40/order
6 days
Maximum lead time
13.5 days
Compute the reorder point for Triple T Inc.
9. FP Co. buys on terms 2/10, net 30, but generally does not pay until the 40 days after invoice date. Its purchases total
P2,160,000 per year. Assuming 360 days a year, the amount of "non-free" trade credit used by the firm on the average each
year is?
Transcribed Image Text:8. Triple T Inc. sells 100,000 tea bags a year. Other data are as follows: Selling price/bag Purchase cost/bag P2.50 20% of unit cost Carrying cost Operating days per year Ave. lead time on purchases P1.50 250 Ordering cost P5.40/order 6 days Maximum lead time 13.5 days Compute the reorder point for Triple T Inc. 9. FP Co. buys on terms 2/10, net 30, but generally does not pay until the 40 days after invoice date. Its purchases total P2,160,000 per year. Assuming 360 days a year, the amount of "non-free" trade credit used by the firm on the average each year is?
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