Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me out with these problems. Problem 5: Cost of Lost Sales Current service level 80% orders per year 500 Units per order 25

Please help me out with these problems.

image text in transcribedimage text in transcribed

Problem 5: Cost of Lost Sales Current service level 80% orders per year 500 Units per order 25 Price per unit $150 Net cost per unit $100 Re-handling cost per backorder $90 Administrative cost per backorder -$30 Reshipping cost per backorder $130 Invoice deduction per backorder $200 Percent incomplete orders backordered 75% Percent incomplete orders cancelled 25% Inventory carrying cost 30% Cost of capital 16% 16. What is the total loss of cash flow under the current service level? a. $127,500.00 b. $86,000.00 c. $96,250.00 d., none of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions