1. MMO needs $9,600,000 of product from a supplier and asks them for a short-term loan. The supplier tells them that they can have a loan and they will only charge them $384,000 in interest if they pay in 100 days. The true cost to MMO is:

A. 4.00%

B. 15.39%

C. 16.07%

D. 15.16%

2. Lasso Machine Equipment expects sales of $3,400,000 with a sales price per unit of $10. The firm estimates an ordering cost of $200 per order, with an inventory carrying cost of $4.00 per unit. What is the optimum order size?

A. 18,439 units

B. 340,000 units

C. 83 units

D. 5,831 units

3. Beldron Co. is considering selling to a group of new customers that will bring in sales of $16,000,000 with a bad debt percentage of 15%. Waldron will have collection costs of $288,000 and C/G/S & selling expenses of 70% of sales. They have tax rate of 30%. The only additional investment they will have is in accounts receivable in which they turnover of 4. Their return on investment will be:

A. 9.24%

B. 36.96%

C. 34.32%

D. 8.58%

4. Leester Company has determined that based on their Economic Order Quantity they will have an EOQ of 380,000 units for one of their main products. They have carrying costs of $.75 per unit and will maintain an additional safety stock of 4,000 units. They will have total carrying costs of what for the year?

A. $72,750

B. $145,500

C. $72,000

D. $144,000