Kindly help me with this one please.
17. Weiss Inc. arranged a P9,000,000 revolving credit agreement with a group of banks. The fim paid an annual commitment fee of 0.5% of the unused balance of the loan commitment. On the used portion of the revolver, it paid 1.5% above prime for the funds actually borrowed on a simple interest basis. The prime rate was 9% during the year. If the firm borrowed P6,000,000 immediately after the agreement was signed and repaid the loan at the end of one year, what was the total dollar annual cost of the revolver? a. P612,750 b. P645,000 c. P677,250 d. P711,113 18. The following information regarding inventory policy was assembled by the JRJ Corporation. The company uses a 50-week year in all calculations Sales 10,000 units peryear Lead time 4 weeks Safety stock 1,300 units | Order quantity 2,000 units The reorder point is a. 3,300 b. 2,100 c. 100 d. 1,300 19. A firm that often factors its accounts receivable has an agreement with its finance company that requires the firm to maintain a six percent reserve and charges one percent commission on the amount of receivables . The net proceeds would be further reduced by an annual interest charge of 10% . assuming a 360 day year , what amount of cash will the firm receive from the finance company at the time a P 100,000 account that is due in 90 days is turned over to the finance company ? a. P93,000 b. P90,000 c. P83,000 d. P90,675 20. The following information regarding inventory policy was assembled by the ABS Corporation. The company uses a 40-week year in all calculations. Sales 10,000 units per year Safety stock 300 units Order quantity 2,000 units Lead time 3 weeks The reorder point is a. 2,000 b. 550 c. 1,750 d. 2,30021. Information for a particular stock item is as follows: Cost of placing an order . P 25 per order Annual demand 12,000 units Cost of holding a stock unit for one month ... P.50 What is the economic order quantity to the nearest 5 units? a. 265 b. 315 C.675 d. 915 22. Assume the following information: Unit transportation-in on purchases P .20 Annual interest foregone from Storage per unit .12 alternative investment of funds P 800 Insurance per unit .10 Annual number of units required 10,000 The annual carrying cost per unit is: a. P .22 b. P .30 C. P .20 d. P .50 23. The economic order quantity is the size of the order that minimizes total inventory costs, including ordering and carrying costs. If the annual demand decreases by 36% , the optimal order size will a. decrease by 20% b. increase by 6% C. increase by 20% d. decrease by 6 %
