A manufacturing company uses 50,000 units per year. The cost per unit is Re.1. Administrative cost per

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A manufacturing company uses 50,000 units per year. The cost per unit is Re.1. Administrative cost per order is Rs.50 per order, carrying cost is 20% on average purchase price. The company currently has optimum purchase policy but has offered 4% discount if they purchase 5 times per year. Should the offer be accepted? If not what counter offer should be made?

Posted Date: May 11, 2024 04:03 AM

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A manufacturing company uses 50,000 units per year. The cost per unit is Re.1. Administrative cost per

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Analysis of Discount Offer Current Scenario Units used per year 50000 Cost per unit Re1 Administrati... View the full answer

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