SamReap Bhd, a listed company, manufactures eco-friendly fridges for industrial and domestic refrigeration. The company started producing and selling its own brand of fridges a few years ago. To minimize the energy consumption, a fridge requires specialised electronie parts to be fitted within the motor. The required electronic parts are not available locally. The company imports the electronic parts from the US for the production of its fridges. SamReap Bhd has contracted to purchase 8,000 electronic parts at a unit price of $20. The US supplier has granted four months credit before payment is due.
SamReap Bhd, a listed company, manufactures eco-friendly fridges for industrial and domestic refrigeration. The company started producing and selling its own brand of fridges a few years ago. To minimize the energy consumption, a fridge requires specialised electronie parts to be fitted within the motor. The required electronic parts are not available locally. The company imports the electronic parts from the US for the production of its fridges. SamReap Bhd has contracted to purchase 8,000 electronic parts at a unit price of $20. The US supplier has granted four months credit before payment is due.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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