The following quotation is received from a supplier in respect of a material: One container is required
Question:
The following quotation is received from a supplier in respect of a material:
One container is required for every 100 units and if containers are returned within two months, credit would be received at Re. 0.20 each.
Calculate the material cost for 3,000 units assuming that purchaser decided to purchase this lot.
Transcribed Image Text:
Lot price 1,000 units 2,000 units 5.5 3,000 units Trade discount - 25% Rs. 5 each. Rs. 4.75 each. Rs. 4,00 each. Freight charges per order-Rs. 100. Containers are charged at Re. 0.50 each.
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To calculate the material cost for 3000 units we need to consider the lot pricing trade discount fre...View the full answer
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