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Part B) Determine trade discounts for a set of goods. Determine which items to order from our different suppliers. Prepare a purchase plan for the following list of goods. The table below shows our expected quarterly sales quantities for the next three-month period. This is the number of items we think we can sell, so we want to order enough of each product to be able to fill customer orders. Use this information as you answer questions about each pro upplier below. BOG Expected Quarterly Sales Product Tents Sleeping bags Backpacks Binoculars Flashlights First Aid Kits We can purchase goods from one or both of two product manufacturers: ACME Outfitters or Camper's Warehouse. Assume that the products available from both suppliers are identical in all specifications and quality. Some items are only shipped in cases and you must buy full cases. For each supplier below, answer these questions to help you fill out the cost tables. How many units of each product do you need to order to satisfy the quarterly sales expectations? For example, if you needed to order 76 items that only come in cases of a dozen, then you need to order 7 cases (76/12-6.33, but round up to 7 full cases get enough to cover the expected demand). Determine the net cost for each product unit. ACME Outfitters offers a 20/35 trade discount and carries the following items: 1. 2 Acme Outfitters Item Quantity 40 230 80 150 550 340 Tent Sleeping bags Backpack Flashlights Order Unit Unit List Price Unit Quantity to order case of 6 1 gross $239 $474 $149 $1,150 1 6 1 1 Unit Net Cost 124.28 246.48 77.48 598 O Camper's Warehouse offers a 30/20/10 trade discount and carries the following items: Camper's Warehouse Item Backpack Binoculars Flashlights First Aid Kits Order Unit Unit List Price Unit Quantity to order 1 1 dozen case of 100 1 gross $159 $750 $833 $2,300 3. 1 1 dozen 4. 5. 6. Case of 100 1 3. Which items should we order from ACME Outfitters? Explain your reasoning. We can order backpacks from ACME because it is cheaper. Also, tent and sleeping bags because it's not available at Campers. 4. Which items should we order from Camper's Warehouse? Explain your reasoning. We can order flashlights because the price per unit is cheaper, and also can buy binoculars and first aid kits because they aren't available at ACME Unit Net Cost 80.14 378 419.83 1159.2 Part C. Complete the invoices for each supplier See the last page for invoice templates to fill out. Follow the steps below to ensure accuracy. For each individual item, order the full quantity needed from the supplier with the better final cost. 1. Fill in the unit quantities you plan to order from each supplier (use your answers from part B1). 2. Use the unit cost (after trade discount) as calculated in part B2 above. Fill in this net cost on the line for each item ordered. Note that the invoices should only show net costs after the trade discount, not the list prices. Calculate the total cost for each item ordered (quantity* unit cost). Fill in the subtotal on cost of all goods ordered from each supplier Calculate the cash discount amount, assuming that payment deadlines are met Determine the invoice total, assuming that we can pay on time to get the cash discount. 7. If we plan to earn the cash discount, what is the payment due date for the invoice from ACME Outfitters? What is the final payment date if the cash discount is missed? 8. If we plan to earn the cash discount, what is the payment due date for the invoice from Camper's Warehouse? What is the final payment date if the cash discount is missed? Use the following invoices for Part C: Ship to: Better Outdoor Gear 1111 Alexander Rd Madison, WI 53700 Qty Unit Stock No. ea. 42210 cs. (6) ca. gr. 69105 Fremont, PA 11217 ACME Outfitters 19223 Description Tent Sleeping bag Backpack Flashlight Subtotal Cash Discount Shipping & Handling Invoice Total Unit Cost Total Cost Free! Invoice # 10024 Date: 10/12/2010 Terms: 2/10 EOM G Ship to: Better Outdoor Gear 1111 Alexander Rd Madison, WI 53700 Qty Unit Stock No. ca. 135-BP dz. C gr. 600-BI 603-FL 581-FA Camper's Warehouse Lexington, WA Description Backpack Binoculars Flashlights First Aid Kits Subtotal Cash Discount Shipping & Handling Invoice Total Unit Cost Invoice # 119963 Date: 10/12/2010 Terms: 2/25 n/45 Total Cost Free! Part B) Determine trade discounts for a set of goods. Determine which items to order from our different suppliers. Prepare a purchase plan for the following list of goods. The table below shows our expected quarterly sales quantities for the next three-month period. This is the number of items we think we can sell, so we want to order enough of each product to be able to fill customer orders. Use this information as you answer questions about each pro upplier below. BOG Expected Quarterly Sales Product Tents Sleeping bags Backpacks Binoculars Flashlights First Aid Kits We can purchase goods from one or both of two product manufacturers: ACME Outfitters or Camper's Warehouse. Assume that the products available from both suppliers are identical in all specifications and quality. Some items are only shipped in cases and you must buy full cases. For each supplier below, answer these questions to help you fill out the cost tables. How many units of each product do you need to order to satisfy the quarterly sales expectations? For example, if you needed to order 76 items that only come in cases of a dozen, then you need to order 7 cases (76/12-6.33, but round up to 7 full cases get enough to cover the expected demand). Determine the net cost for each product unit. ACME Outfitters offers a 20/35 trade discount and carries the following items: 1. 2 Acme Outfitters Item Quantity 40 230 80 150 550 340 Tent Sleeping bags Backpack Flashlights Order Unit Unit List Price Unit Quantity to order case of 6 1 gross $239 $474 $149 $1,150 1 6 1 1 Unit Net Cost 124.28 246.48 77.48 598 O Camper's Warehouse offers a 30/20/10 trade discount and carries the following items: Camper's Warehouse Item Backpack Binoculars Flashlights First Aid Kits Order Unit Unit List Price Unit Quantity to order 1 1 dozen case of 100 1 gross $159 $750 $833 $2,300 3. 1 1 dozen 4. 5. 6. Case of 100 1 3. Which items should we order from ACME Outfitters? Explain your reasoning. We can order backpacks from ACME because it is cheaper. Also, tent and sleeping bags because it's not available at Campers. 4. Which items should we order from Camper's Warehouse? Explain your reasoning. We can order flashlights because the price per unit is cheaper, and also can buy binoculars and first aid kits because they aren't available at ACME Unit Net Cost 80.14 378 419.83 1159.2 Part C. Complete the invoices for each supplier See the last page for invoice templates to fill out. Follow the steps below to ensure accuracy. For each individual item, order the full quantity needed from the supplier with the better final cost. 1. Fill in the unit quantities you plan to order from each supplier (use your answers from part B1). 2. Use the unit cost (after trade discount) as calculated in part B2 above. Fill in this net cost on the line for each item ordered. Note that the invoices should only show net costs after the trade discount, not the list prices. Calculate the total cost for each item ordered (quantity* unit cost). Fill in the subtotal on cost of all goods ordered from each supplier Calculate the cash discount amount, assuming that payment deadlines are met Determine the invoice total, assuming that we can pay on time to get the cash discount. 7. If we plan to earn the cash discount, what is the payment due date for the invoice from ACME Outfitters? What is the final payment date if the cash discount is missed? 8. If we plan to earn the cash discount, what is the payment due date for the invoice from Camper's Warehouse? What is the final payment date if the cash discount is missed? Use the following invoices for Part C: Ship to: Better Outdoor Gear 1111 Alexander Rd Madison, WI 53700 Qty Unit Stock No. ea. 42210 cs. (6) ca. gr. 69105 Fremont, PA 11217 ACME Outfitters 19223 Description Tent Sleeping bag Backpack Flashlight Subtotal Cash Discount Shipping & Handling Invoice Total Unit Cost Total Cost Free! Invoice # 10024 Date: 10/12/2010 Terms: 2/10 EOM G Ship to: Better Outdoor Gear 1111 Alexander Rd Madison, WI 53700 Qty Unit Stock No. ca. 135-BP dz. C gr. 600-BI 603-FL 581-FA Camper's Warehouse Lexington, WA Description Backpack Binoculars Flashlights First Aid Kits Subtotal Cash Discount Shipping & Handling Invoice Total Unit Cost Invoice # 119963 Date: 10/12/2010 Terms: 2/25 n/45 Total Cost Free

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