Copeland Sporting Goods is evaluating two suppliers of footballs, Big Red and Quality Sports. Pertinent information about
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Calculate the relevant costs of purchasing (1) from Big Red and (2) from Quality Sports using the format of Exhibit 20-6 (p. 818). From whom should Copeland buy footballs?
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Relevant Item Big Red Quality Sports S 60.00 $7.20 0.02 $61.20 Purchase price per unit (case) Ordering costs per order Inspection costs per unit Insurance, material handling, and so on per 7.20 $0.00 $4.00 $4.50 unit per year Annual demand Average quantity of inventory held during 12,000 units 12,000 units 100 units the year Required return on investment Stockout costs per unit Stockout units per year Customer returns Customer-return costs per unit 100 units 15% 15% $ 24 $ 12 350 units 60 units 300 units 25 units $ 30 $ 30
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EXHIBIT 2039 Annual Relevant Costs of Purchasing from Big Red and Quality Sports Relevant Costs o...View the full answer
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Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
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