1. Use the following information to determine the implied fixed inventory ordering costs EOQ- 83.67 units Demand 350 units Holding Costs- $3.00 Torque Manufacturing forecasts that its production will require 600,000 tons of bauxite over its planning period. Demand for Torque's products is stable over time. Ordering costs amount to an average of $15.00 per order. Holding costs are estimated at $1.25 per ton of bauxite. If Torque uses an inventory quantity of 3,000 tons, what will be the total annual cost of inventory? nalyst has received a $10,000 order from a new customer. The cost of filling the order (i.e., COGS) be paid immediately. Further, it is assumed that the customer will repay the trade credit obligation in 60 days. It is also assumed that the collection costs will be incurred in 60 days. If the appropriate discount rate is 8%, what is the NPV of extending credit to the new customer? ) is $8,000 and collection costs are $200. The credit analyst notes that the CoGS will Firm Z is evaluating a proposal to extend credit to a group of new customers. The new customers will generate an average of $90,000 per day in new sales. On average, they will pay in 30 day COGS ) is 80% of sales, collection expenses are 5% of sales, and the The variable cost ratio (i.e. discount rate is 8%. Assume that the variable costs occur upfront, while the collection costs occur on the date in which the customer's payment is received. What is the NPV of one day's sales if Firm C grants credit? Assume that there is no bad debt loss Firm A is trying to decide whether to offer a 30% cash discount for paym ents made within 10 days, making its new terms 3/10, net 30. On average, its paying customers currently pay i der its present terms of net 30. A sales analyst estimates that sales will stay the same. T 0(t the rate under the new policy will be the same. It is estimated The d nay on the 10th day, on average. The