Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

CASE-7-2 Machinery Lubricants, INC. Question. If you were Rami, how would you plan the sales call? de docx Now lab MYWAY V Crooke Rank VitalSource

image text in transcribed
image text in transcribed
CASE-7-2 Machinery Lubricants, INC. Question. If you were Rami, how would you plan the sales call? de docx Now lab MYWAY V Crooke Rank VitalSource Book X 59269196/ch/243174/400.000.00 CASE 7-2 MACHINERY LUBRICANTS, INC. Rami Semchuk sells industrial lubricants for machinery to manufacturing plants. Tomorrow, Rami plans to call on the purchasing agent for Acme Manufacturing Company. For the past two years, Rami has been selling Hy- draulic Oil 65 in drums to Acme. Rami's sales call objective is to persuade Acme to switch from purchasing oil in drums to a bulk oil system. Last year. Acme bought approximately 364 drums or 20,000 litres at a cost of $1.39 a litre or $27.800. A deposit of $20 was made for each drum. Traditionally, many drums are lost, and one to two litres of oil may be left in each drum when re- turned by customers. This is a loss to Acme. Rami wants to sell Acme two 3,000-litre storage tanks at a cost of $1700. He has arranged with Pump Supply Company to install the tanks for $1.095. Thus, the total cost of the system would be $2795. This system reduces the cost of the oil from $1.39 to $1.25 per litre, which would allow it to pay for itself over time. Other advantages include having fewer orders to process each year, reducing the amount of storage space needed, and having workers handle the oil less. QUESTION If you were Rami, how would you plan the sales call? CASE 7-3 CASCADE SOAP

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Cases An Active Learning Approach

Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt

2nd Edition

0130674842, 978-0130674845

Students also viewed these Finance questions