Answered step by step
Verified Expert Solution
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
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started