Question: 7 5 units per order 1 , 5 0 0 orders per year Net cost per unit = $ 3 5 0 7 0 %

75 units per order
1,500 orders per year
Net cost per unit = $350
70% of incomplete orders backordered; 30% canceled
Cost per backorder = $350
Invoice deduction per backorder = $325
1.
What is the total lost profit or cash flow at 80% in-full rate?
2.
What is the total lost profit or cash flow at 90% in-full rate?
3.
What is the percentage decrease in lost profit or cash flow from this 10% increase in in-full rate?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!