Answer:
a. Revenues - These will increase by $5 million to represent the entire value of the order.
b. Earnings. - Increase by $3 million
Earnings in this case are revenue less the cost of inventory which will be;
= 5 - 2
= $3 million
c. Receivables - Increase by $4 million
The customer paid $1 million upfront which means that they still owe $4 million out of the $5 million. This will go to the receivables account to show that the customer owes the business.
Answer:
Modified Rebuy.
Explanation:
Modified Rebuy can be defined as the desires of a buyer to re-purchase or reorder the products previously bought but with certain modifications either in prices, products, suppliers, or terms. The buyer may modify the current purchasing terms because he may not be satisfied with the supplier or may have some new requirements.
In the given case, the modification in supplier has been made by the organization to get a better price. Thus this is an example of modified rebuy.
So, the correct answer is modified rebuy.
Answer:
Explanation:
D = 60 bags
cost = 80 / bag
s = 20 / order
h = 40% of cost
0.4 * 80 / 100
h= 32 unit/year
D = d * 12 months
D = 60 * 12
D = 720 bags / year
EOQ = 
EOQ = 
EOQ = 30 bags
Total cost = Total holding cost + total ordering cost
Total holding cost = (Q/2 * H) = (30/2 * 32) = 480
Total ordering cost = (D/Q * 20) = (720/30 *20) = 480
Total cost = 480 + 480 = 960
Total purchasing cost = cost * D = 80 * 720 = 57.600
Percentage= total cost / total purchasing cost * 100
960 / 57.600 * 100
1.67 %
The answer is Regional economic integration
