$1\mathrm{.}2$

REQUIRED

Prepare the production plan for each month of the quarter ending $31$ March $2024.$

INFORMATION

The information given below was supplied by Philips Enterprises:

The expected sales for the period $01$ December $2023$ to $30$ April $2024$ are as follows :

Production for each month equals $60\%$ of the current month's projected sales and $40\%$ of the following

month's projected sales.

REQUIRED

Study the information given below and calculate the cost $($as a percentage, expressed to two

decimal places$)$ to Oudtshoorn Stores of not accepting the discount.

INFORMATION

Jimbo Wholesalers' credit terms to Oudtshoorn Stores are $60$ days but the supplier is prepared to allow a

$2\mathrm{.}5\%$ rebate if Oudtshoorn Stores pays the account within $12$ days.