managerial accounting

D&R Corp. consumes 300,000 units of spare part V per year. The average purchase lead time is 20 working days while the maximum is 27 working days. The company's annual operations cover 240 days allowing for shutdowns for plant maintenance. holidays and Sundays. The company would like to keep safety stock or extra stock to guard against stock-outs. How much is the safety stock? Phranklin Pham'ls Inc. purchases merchandise from a company that gives sales terms of 215. net 40. Phranklin Pharrns has gross purchases of $800,000 per year. What is the maximum amount of costly trade credit Phranklin could get, assuming they abide by the suppliers credit terms? [Assume a 300-day year.)