need some help plzz BUSINESS MATH Exam 4-Coninued clma nays an imvoice for an of
ID: 2602278 • Letter: N
Question
need some help plzz
BUSINESS MATH Exam 4-Coninued clma nays an imvoice for an office supply orer at the DMV on December n The net price on the order is $312 55, the terms are I0, set 30, and the date of the invoice s i December 10 Paity pays an irvoice foe producing a safe driving vadeo at the DMV on December 1i The net price on the onder is $545.00: the terms are 3/IQ, net 30, and date of the imeence is December 3 Abeaham pays inveice for cleaning the retiremeat home's bus on Febeuary 7. The net price on the oeder is $5R.93, the verms are 2/5 BOM, and the date of the invoice is nuary 29 (an exlension is gracted since the dase is so near the end of the month). Sclect the person or people who receirve the cash discount A) Pattie anly (1B) Selma only (C) Abrsham only Pattie and Selma (E) Pattie and Abrnhsm Fi Selma and Abraham (G) Pattic, Selma, and Abenbam (H) Nobody Herman always carries an inventory of between $60000 and SNDM0 his saore, Herman's Milzary Antiques His annual costs for carrying this invenmory are 4% for scruge, 6% for insurance, 3% for taxes, and 12% interest Select the correct cakculation of the greatest possibie carrying cast for Herman's inventory (A) [S80,000-00,000) x (100%-4%-6%-3%-12%) CE) S60.000 × (456 +6%+3%+12%) 000 x (4%+6%+3%+17%) b) ($80,000 + S60,000) x (100%-4%-6%-3%-12%) (more)Explanation / Answer
The correct answer for Question No. 8 is:
b. Selma Only.
Because selma made payment on December 17, the date on invoice was december 10, and the terms of paymeennt was 3/10 net 30. Which means Selma could get a discount of 3% if she makes the payment within 10 days of contract date, which is before December 20....And maximum period for her payment is 30 days. Selma made payment on 17th, which falls within december 20 (10 days). Thus she is eligible for discount.
Pattie had a term of 3% discount if paid within 10 days of contract date. contract date is December 3 so Pattie should have made payment before december 13 to be eligible for discount, but she made payment on 17th, which is beyond ten days. Hence she is not eligible for discount.
Abraham had a term of 2% discount if paid within 5 days of contract. contract date is January 29 so in order to be eligible for discount of 2% he should have paid within February 3 (within five days of invoice date). But he made payment on february 7th. So he is also not eligible for any discount.
Answer to 9.
Carrying cost includes Capital cost, storage cost, Insurannce, taxes, warehouse cost, and interest cost.
Thus the third option includes all the four costs which is calculated on the maximum possible inventory carried of $80,000.
Thus it can be calculated as $80,000 * (4%+6%+3%+12%)
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