• April 19, 2018, 08:20 AM
• Welcome, Guest. Please login or register.
Did you miss your activation email?
Perusing The Shelves

Author Topic: UL Solve Question exchange with Project Report: Thank you  (Read 1488 times)

samirzahir

  • Guest
Help me solve this question and I can share with you project reports. Thanks

Q:An international Sports company has stable sales over the years, one of its products are cricket balls with below financial information;

Selling price
40 GBP
Variable cost 30 GBP
Fixed cost apportionment 5 GBP 35 GBP
Net profit 5 GBP
An association has request of buying 30,000 balls per year, but demanding 4 months credit. Now, if Sports company allow this credit, other customers will demand similar credit, where they are only given one month credit. Current level of sales is 120,000 balls each year. By accepting this order, 10,000 extra balls will have to be held in stock (stock is valued at total cost) but trade creditors will increase by GBP 350,000. Sport company expect return of 25 per cent pa on it net capital invested.

Question. I want to asses the offer made on the basis that;

a, all customers will receive a credit period of four months; and
b, only the offering association will receive a four-month credit period.
 

Advertisement


Tags:
 

Related Topics

  Subject / Started by Replies Last post
1 Replies
3882 Views
Last post February 18, 2011, 06:53 PM
by priyabala
1 Replies
7870 Views
Last post December 08, 2008, 06:47 AM
by anurag08
1 Replies
4437 Views
Last post October 26, 2009, 10:12 PM
by makubex87
UL solve the problem

Started by thirupathikk Management | MBA

0 Replies
2088 Views
Last post October 20, 2009, 09:51 AM
by thirupathikk
4 Replies
2622 Views
Last post April 07, 2010, 01:37 AM
by anurag08
ebook exchange

Started by seohyunalle Bookstore Cafe

2 Replies
1956 Views
Last post May 30, 2012, 07:14 PM
by seohyunalle