Question
A retailer is considering the purchase of 100 units of a specific item from either of two suppliers. Their offers are as follows: A:
A retailer is considering the purchase of 100 units of a specific item from either of two suppliers. Their offers are as follows: A: $780 a unit, total of $78,000, 1/10, n/30, plus freight of $1,500. ($78,720) B: $800 a unit, total of $80,000, 2/10, n/30, no charge for reight. ($78,400) Which of the two offers, A or B, yields the lower price? Answer: xplain your answer: Problem 9 (10 Points) On a multiple-step income statement, the excess of sales over the cost of goods sold is called: A. Operating income B. Income from Operations c. Gross Profit D. Net Income Answer: Problem 10 (10 Points) As a manager you are presented with a $10,000 investment opportunity that will yield $1,600 in additional operating income. The manager's division is currently operating at 17% ROI. If the company's minimum acceptable return is 15%, what will happen to the company's residual income if the investment is accepted by the manager? A. It will increase by $1,500 B. It will increase by $1,600 c. It will increase by $100 D. It will increase by $200 Answer:
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