Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dear Tutor, please help to answer below ques: Question 4 15 pts Question 4 (15 Marks) A special contract had been offered to the company

Dear Tutor,

please help to answer below ques:

image text in transcribed
Question 4 15 pts Question 4 (15 Marks) A special contract had been offered to the company to serve as a special project manager to help the small oil palm farmers to buy their fruit bunch as they were complaining of malpractice by the middlemen that currently purchased their fruit. The proposal is to set a mobile buyers containers truck to be stationed near the small farmers area to buy all the fruit bunch from them. This may be seen as a direct rival to the current buyers The cost of each set of containers truck and weighing equipment is RM 250.000 and can be safely used for 5 years. The operating costs of running these containers truck is RM 50,000 per month. The office and corporate overheads on the project is estimated to be RM 30.000 a month The expected purchased volume of fruit bunch is about RM 30,000 a day with an internal profit margin of 8%: The fruit bunch truck will operate 30 days a month. The group propose to start with 20 trucks as a pilot project 1. Should the group venture into this project ? Show your calculation (10 marks] 2. What are the qualitative considerations that must be taken into account in the decision

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

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

Principles Of Accounting And Principles Of Financial Accounting

Authors: Belverd E Needles, Marian Powers, Susan V Crosson

12th Edition

1133962459, 9781133962458

More Books

Students also viewed these Accounting questions

Question

3. Housekeeping, such as watering plants or storing personal items

Answered: 1 week ago