Question
3.- Sal La Fina is a 100% Mexican company that sells bulk salt. It has two lines business: Restaurants and Home. Your most important supplier,
3.- Sal La Fina is a 100% Mexican company that sells bulk salt. It has two lines business: Restaurants and Home. Your most important supplier, who supplies you with 85% of the salt, It is located in Guerrero Negro, Baja California. Recently, Sal La Fina bought 200 kilos of salt from $ 600 / kilo. i. On October 3, he sold 12 kilos of salt at P $ 1,000 / kilo.
Register the accounting entries corresponding to the sale of October 3.
ii. Sal La Fina wants to be vertically integrated; What strategy do you follow in order to achieve that objective? If "Sal La Fina" wanted to integrate horizontally, what strategy would you follow in order to to achieve that goal? What are the differences between integrating vertically and horizontally?
From the perspective of a company that is vertically integrated, what differences are there? against a company that is not vertically integrated?
iii. Recently, "Sal La Fina" signed an agreement with its supplier to buy 400 kilos per month. of salt at a preferential price in order to be vertically integrated. If "Sal La Fina" cannot move 400 kilos per month, what impact do you expect on the results of Sal La Fina?
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