Question 01#

Question 02#

Two different suppliers have quoted different unit prices and payment windows for a commodity part used by an industrial company. The purchasing manager for the part will decide on which supplier to use based on a price analysis that adjusts for the difference in the payment windows, thereby reflecting the opportunity cost of making earlier payments. The relevant information is as follows: Unit Price Payment Window (days) Supplier A $59.00 35 Supplier B $60.55 80 If the annual cost of capital for the company is 5%, which supplier is offering the better price given the opportunity cost required by making a payment earlier if Supplier A is chosen? The effective cost of purchasing from Supplier A is $ per unit. (Enter your response rounded to two decimal places.) is a better supplier in terms of price. Supplier A Please copy and paste data from text area below. Selected delimiter: Tab Supplier B Supplier A Unit Price, $ 59.00 Payment Window (days) Supplier B 60.55 35 80 Done A company is able to implement one of two strategies regarding a particular product: hire a marketing firm to increase sales 18% or assign a product procurement manager who can reduce material cost for the product by 7%. Currently, the product has sales of $9,300,000. The costs of materials are $6,600,000, labor costs are $1,100,000, and overhead costs are $600,000. What are the effects on net income of the two alternative strategies? The change in net income after the 18% increase in sales is $. (Enter your response as a whole number.) The change in net income due to the reduction in material costs is $. (Enter your response as a whole number.) Based on the change in net income, the company should assign a product procurement manager hire a marketing firm