a. Company sells 2,583 chairs a year at an average price per chair of $141. The
ID: 2653609 • Letter: A
Question
a. Company sells 2,583 chairs a year at an average price per chair of $141. The carrying cost per unit is $28.89. The company orders 502 chairs at a time and has a fixed order cost of $92.8 per order. The chairs are sold out before they are restocked. What are the total shortage costs?
b.
QUESTION 23
Month
Sales $
Month
Sales $
Jan
47,489
July
36,085
Feb
34,128
Aug
39,903
Mar
39,903
Sep
47,489
Apr
36,085
Oct
39,903
May
47,489
Nov
34,128
June
34,128
Dec
36,085
Sales are collected as follows:In the month of Sales: 41%In the next month: 30%After 2 months: 6%Remainder is considered as bad debt and is not collected.Calculate the cash collection for June.
Month
Sales $
Month
Sales $
Jan
47,489
July
36,085
Feb
34,128
Aug
39,903
Mar
39,903
Sep
47,489
Apr
36,085
Oct
39,903
May
47,489
Nov
34,128
June
34,128
Dec
36,085
Explanation / Answer
Cash Collection for the month of June.
Cash Collection from 41% of June Sales = $34128 * 41% = $13,992.48
Cash Collection from May sales = 30% * 37,128 = $11,138.40.
Cash Collection from April Sales = 6% * 36,085 = $2,165.1
Total Collection = $13,992.48+$11,138.40+$2165.1 = $27,295.98
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