Answer:
Answer for the question:
Assume an organization's current service level on order fill is as follows:
Current order fill 80%
Number of orders per year 5,000
Percent of unfilled orders back-ordered 70%
Percent of unfilled orders cancelled 30%
Back order costs per order $150
Lost pretax profit per cancelled order $12,500
a) What is the lost cash flow to the seller at this 80 percent service level?
b) What would be the resulting increase in cash flow if the seller improved order fill to 92 percent
c) If the seller invested $2 million to produce this increased service level, would the investment be justified financially?
d) What is the role of activity-based costing in customer relationship management? In customer segmentation?
is given in the attachment.
Explanation:
Answer:
Cost of goods sold = $836
Ending inventory = $315
Explanation:
a) Data and Calculations:
Date Description Units Unit Price Balance
Apr. 1 Inventory 12 $45 $540
Apr. 11 Purchase 13 $47 $1,151 ($540 + 13 * $47)
Apr. 14 Sale (18) $100 $315 ($7 * $45)
Sales revenue = $1,800 ($100 * 18)
Cost of goods sold = $836 ($47 * 13 + $45 * 5)
Ending inventory = $315 ($7 * $45)
b) Under the LIFO (Last in, First out) inventory valuation method, it is assumed that goods that were purchased closest to the selling date were the ones to be sold while those purchased earlier remain in inventory.
Answer:
Bob’s realized gain on the sale is $55,000,
Explanation:
The first step is to find the Book Value of the Rental Property Sold.
<u>Book Value of the Rental Property Sold.</u>
Cost $260,000
Less Accumulated Depreciation ($37,000)
Book Value $223,000
Gain or Loss on Sale = Selling Price - Cost of Sale (Book Value) - Other Selling Expenses
= $290,000 - $223,000 - $12,000
= $55,000
<u>Conclusion :</u>
Bob’s realized gain on the sale is $55,000,