Suppose you are the purchasing manager for a company that manufacturesscanners and other computer peripherals. Your vendor for scanner motors isnow offering "quantity discounts" in the form of instant rebates and lowershipping charges as follows.QuantityNet PriceRebateShipping1-500 motors$16none$1.50501-1,000 motors16$1.301.101,001-2,000 motors161.900.80(a) Calculate the cost of the motors, including shipping charges, for eachcategory (in $).1-500 motors2$17.50501-1,000 motors2415.801,001-2,000 motors2414.90(b) Ifyou usually purchase 400 motors per month, what percent would besaved per motor by ordering 800 every two months? Round to thenearest tenth of a percent.9.7%(c) What percent would be saved per motor by ordering 1,200 every threemonths? Round to the nearest tenth of a percent.14.9(d) How much money (in $) can be saved in a year by purchasing the motorsevery three months instead of every month?$(e) What other factors besides price should be considered before changingyour purchasing procedures?

Answer: Part d: 400 motors per month mean 4800 motors per year i.e. (400 x 12 months) If 4800…

Suppose you are the purchasing manager for a company that manufactures scanners and other computer peripherals. Your vendor for scanner motors is now offering "quantity discounts" in the form of instant rebates and lower shipping charges as follows. Quantity Net Price Rebate Shipping 1-500 motors $16 none $1.50 501-1,000 motors 16 $1.30 1.10 1,001-2,000 motors 16 1.90 0.80 (a) Calculate the cost of the motors, including shipping charges, for each category (in $). 1-500 motors 24 17,50 501-1,000 motors $ 15,80 1,001-2,000 motors $ 14.90 If you usually purchase 400 motors per month, what percent would be saved per motor by ordering 800 every two months? Round to the nearest tenth of a percent. (b) 9.7 % (c) What percent would be saved per motor by ordering 1,200 every three months? Round to the nearest tenth of a percent. 14.9 % (d) How much money (in $) can be saved in a year by purchasing the motors every three months instead of every month? 2$ (e) What other factors besides price should be considered before changing your purchasing procedures?

Suppose you are the purchasing manager for a company that manufactures scanners and other computer peripherals. Your vendor for scanner motors is now offering "quantity discounts" in the form of instant rebates and lower shipping charges as follows. Quantity Net Price Rebate Shipping 1-500 motors $16 none $1.50 501-1,000 motors 16 $1.30 1.10 1,001-2,000 motors 16 1.90 0.80 (a) Calculate the cost of the motors, including shipping charges, for each category (in $). 1-500 motors 24 17,50 501-1,000 motors $ 15,80 1,001-2,000 motors $ 14.90 If you usually purchase 400 motors per month, what percent would be saved per motor by ordering 800 every two months? Round to the nearest tenth of a percent. (b) 9.7 % (c) What percent would be saved per motor by ordering 1,200 every three months? Round to the nearest tenth of a percent. 14.9 % (d) How much money (in $) can be saved in a year by purchasing the motors every three months instead of every month? 2$ (e) What other factors besides price should be considered before changing your purchasing procedures?

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 3A

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