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ss7ja [257]
3 years ago
8

Mr. Hugh Warner is a very cautious businessman. His supplier offers trade credit terms of 3/14, net 95. Mr. Warner never takes t

he discount offered, but he pays his suppliers in 85 days rather than the 95 days allowed so that he is sure the payments are never late. What is Mr. Warner's cost of not taking the cash discount? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Business
1 answer:
blsea [12.9K]3 years ago
3 0

Answer: 15.68%

Explanation:

Mr. Warner's cost of not taking the cash discount will be calculated as:

= (3%/100% - 3%) × (360/85 - 14)

= (3%/97%) × (360/71)

= 0.0309278 × 5.0704225

= 0.156817

= 15.68%

Mr. Warner's cost of not taking the cash discount is 15.68%

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Answer:

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Explanation:

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This slows down speed of decision making.

At this stage there is a need for revitalisation and change in order to make the organisation more efficient.

Change management is the process by which employees in an organisation are prepared and supported when there are far reaching improvements to organisation structure.

It ensures a smooth transition by providing needed information and reducing the stress associated with organisational change.

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Answer:

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