Author Question: If Tim decides to buy 1500 wallets, from which vendor should he purchase the wallets and explain ... (Read 166 times)

joblessjake · **on:** Sep 11, 2018

If Tim decides to buy 1500 wallets, from which vendor should he purchase the wallets and explain why? Calculate the unit cost and the total cost of the wallets from each vendor? (Assume the cash discount is taken)

What will be an ideal response?

Question 2

Determine the sales per square foot given the following data: 3.6 million annual net sales and 9,500 square feet of selling space.

What will be an ideal response?

Alyson.hiatt@yahoo.com · **Reply #1 on:** Sep 11, 2018

Answer to Question 1

Yiwu Leather Product unit price with 8 cash discount = 23.23 . This would provide a total cost of 1500 wallets x 23.23 = 34,845.00 .

Shenzhen Leather Export unit price with trade discounts of 15 and 10 = 23.38 . This would provide a total cost of 1500 wallets x 23.38 = 35,070.00 .

In this situation Yiwu Leather is offering the lower price but Tim has to agree to pay within 10 days of the invoice date. Thus, going with Yiwu Leather makes sense.

Answer to Question 2

Sales/sq. ft. = 3,600,000 9,500 sq. ft. = 378.95