Question: Question 2 The King Olaf Bar buys Old World draft beer by the barrel from a local distributor. The bar has an annual demand of

Question 2 The King Olaf Bar buys Old World draft

Question 2 The King Olaf Bar buys Old World draft beer by the barrel from a local distributor. The bar has an annual demand of 750 barrels, which it purchases at a cost of $210 per barrel. The annual carrying cost is 20% of the price, and the cost per order is $170. The distributor has offered the bar a reduced price of $195 per barrel if it will order a minimum of 300 barrels. Should the bar take the discount and if so, what type of saving will they reap? Manually solve this problem and show your workings

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!

The Fifth Quarter Bar buys Old World draft beer by the barrel from a local distributor. The bar has an annual demand of 900 barrels, which it purchases at a price of $205 per barrel. The annual...

thanks in advance please provide answer as early as possible The Fifth Quarter Bar buys Old World draft beer by the barrel from a local distributor. The bar has an annual demand of 900 barrels, which...

The Fifth Quarter Bar buys Old World draft beer by the barrel from a local distributor. The bar has an annual demand of 900 barrels, which it purchases at a price of $205 per barrel. The annual...

QUESTION 1 The Sunny Beach Bar buys draft beer by the barrel from a local distributor. It has an annual demand for 9 0 0 barrels of beer, which it purchases from the distributor at a price of $ 2 0 5...

Use the Micro Brew Industry case 5 below format for case analyses in strategic management. Problem/opportunity statement and situation analysis - in this instance, what are common problems affecting...

i neeed this answer to this question and this question alone i will paypal you 200 dollars if you give it to me in percentage. 2. Under the status quo, what will MM Lager's sales revenues and E.C....

MKTG522 Integrated Marketing Communications (IMC) Campaign Plan Topic Proposal Form: Week 1 Bhoomi Shah Identify and describe the selected brand. The Wall Street Bar is a bar, located in San Paulo,...

10) Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours in the...

The cost per unit is found by averaging the total costs incurred over the units produced when using Blank _ _ _ _ _ _ costing . Multiple choice question. job - order process both process and job -...

Read the articles on journaling and review the template provided. Identify what approach, to journaling, in the articles you found useful and why. Post to the discussion forum that you have reviewed...