Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i am only on question 3 which is shown. it has 4 parts i am only on 3 the forth part is not yet shown

image text in transcribed
image text in transcribed
i am only on question 3 which is shown. it has 4 parts i am only on 3 the forth part is not yet shown to me
Rob McMillan is an independent fuel oil and propane distributor and wholesale fuel prices were higher than normal. Rob's last invoice showed that fuel oil was priced at $3.425 per gallon, with trade discounts of 7/5/1.5 available. McMillan Oil offers its own customers credit terms of 2/15, net/30, with a 2% service charge on late payments. Or the $30,000 in average fuel oil sales per month, normally half of Rob's sales are paid within the discount period, and only 10% incur the monthly service charge. Rob is concerned because a number of his fuel oil customers are behind in their payments, and he is considering some changes. Complete parts 1-4 below UA. the new supplier B. the original supplier ne changes. Como service charge Bewerage fuel oil sale. McMillan No 3 Using the average monthly sales of $30,000, what is the total savings enjoyed by those fuel oil customers who normally pay within the discount period? $ 300 What is the total penalty paid by those that are delinquent over 30 days? Rob McMillan is an independent fuel oil and propane distributor and wholesale fuel prices were higher than normal. Rob's last invoice showed that fuel oil was priced at $3.425 per gallon, with trade discounts of 7/5/1.5 available. McMillan Oil offers its own customers credit terms of 2/15, net/30, with a 2% service charge on late payments. Or the $30,000 in average fuel oil sales per month, normally half of Rob's sales are paid within the discount period, and only 10% incur the monthly service charge. Rob is concerned because a number of his fuel oil customers are behind in their payments, and he is considering some changes. Complete parts 1-4 below. 1 Using the starting price of $3.425 per gallon, what is Rob's net price after applying the 7/5/1.5 trade discount series using the net decimal equivalent? $ 2.981 (Round to three decimal places as needed.) 2 Rob is considering purchasing his fuel oil from a new supplier offering fuel oil at $3.939 per gallon, but with a better trade discount series of 97873. Compared to your answers in Exercise 1, which supplier would be a better deal for his company? A the new supplier B. the original supplier

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

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

Risk Based Auditing

Authors: Phil Griffiths

1st Edition

0566086522, 9780566086526

More Books

Students also viewed these Accounting questions

Question

An inventory profit is a fictitious profit. Do you agree? Explain.

Answered: 1 week ago

Question

* What is the importance of soil testing in civil engineering?

Answered: 1 week ago

Question

Explain the concept of shear force and bending moment in beams.

Answered: 1 week ago