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1.Determine the Fixed and variable costs of the company 2.Yayasan Bakti, an NGO has requested a make a bulk purchase on a special order food

1.Determine the Fixed and variable costs of the company

2.Yayasan Bakti, an NGO has requested a make a bulk purchase on a special order food stuff to be distributed to the needy groups in the urban poor areas. They requested for a special discount at 10% on all purchase. The purchase volume is expected to be about RM 5,000,000 per month for 12 months. Should the company entertain the order?

3.What is the maximum discount that the company could give so it will not make any loss from the supply.

4.The company have been approached by the Fishermen association from Kedah who pledge to supply all the fish for the supermarket chain at 50% lower the market price. However, the company need to arrange for the pick up of the fish from their jetty at Kuala Kedah. The annual volume of the purchase will be about RM 180,000,000. Currently the average profit margin on the Fish product is 30%. The company need to set up an office at the Kuala Kedah jetty to adminster the fish arrangement. The company will incur about RM 30,000 administrative expenses per month. Should the company take up the offer?

5.The company may have to invest on 20 Freezer haulage to keep and transport fish continuously from Kuala Kedah to the company's hypermarket premises nationwide. The freezer haulage will cost RM500,000 each and have a useful life of 5 years. The operating costs on each freezer haulage system is RM 30,000 per month. Alternatively, the company could also engage a haulage company to perform the delivery of fish direct from Kuala Kedah to each hyptermarket premises at RM 2,000,000 per month. Should the company arrange their own delivery or give the delivery contract to the haulage company?

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