Question: 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,

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 carrying cost is 12% of the price, and the cost per order is $160. The distributor has offered the bar a reduced price of $190 per barrel if it will order a minimum of 300 barrels. Should the bar take the discount?

Step by Step Solution

★★★★★

3.48 Rating (161 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

D 900 P 205 C C 12 P C o 160 Without discount Q 2C D ... View full answer

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

300-B-F-F-M (3869).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!

An SKU has an annual demand of 10,000 units, each costing $15, ordering costs are $80 per order, and the cost of carrying inventory is 25%. Calculate the EOQ in units and then convert to dollars.

The mythical Owen Distributors has an annual demand of 2,000 units for its handheld security wands. The average cost of the handheld security wand is US$140. Carrying cost is 18% of the unit cost of...

A retail store has an annual demand for 30,000 units of one of its products ordered from a wholesaler at a unit cost of $25. The cost of ordering has been estimated to be $10 per order. The company...

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 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...

The sunny beach bar buy draft beer by the barrel from a local distributor. It has an annual demand for 9 0 0 barrels of beer, which it purchase from the distributor at a price of $ 2 0 5 per barrel....

What are the basic rules from claiming the earned income credit based off of 2019 tax year? (e.g. Who qualifies? What affect does filing status have on the credit? How much is refundable?

Using the answer to Problem 19 on the Wal-Mart growth rates and the current trading price, determine the current required rate of return for the company.

Ross would like to dispose of some land he acquired four years ago because the land will not continue to appreciate. Its value has increased by $ 5 0 , 0 0 0 over the 4 - year period. Ross also...

What conditions would favor the use of each?

Solve the linear programming model formulated in Problem 25 for Rucklehouse Public Relations graphically. a. Determine the sensitivity ranges for the daily cost of a telephone interviewer and the...

Solve the linear programming model formulated in Problem 25 for Rucklehouse Public Relations by using the computer. a. If the firm could reduce the minimum interview requirement for either telephone...

The Bluegrass Distillery produces custom-blended whiskey. A particular blend consists of rye and bourbon whiskey. The company has received an order for a minimum of 400 gallons of the custom blend....

Question 1. (20 points) A project requires an initial investment of $260,000 and is expected to generate the following net cash inflows: Year 1: $95,000 Year 2: $90,000 Year 3: $85,000 Year 4:...

The value of a sports franchise is directly related to the amount of revenue that a franchise can generate. The accompanying data table gives the value and the annual revenue for 15 major sport...

This is the Midterm Exam #2 for Math 227 This wxam is on Canvas Module: Probability (Sections 05, 06, and 07),Canvas Module: Discrete Probability Distributions (Sections 08 and 09) &Canvas Module:...