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Sandhill Ltd. Has the following quantity discount policy with its supplier Evanora Inc. Quantity Price per Case 1-299 cases $27.00 300-749 cases $25.53 750-1,499



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Sandhill Ltd. Has the following quantity discount policy with its supplier Evanora Inc. Quantity Price per Case 1-299 cases $27.00 300-749 cases $25.53 750-1,499 cases 1,500 + cases $24.44 $23.15 The economic order quantity is 173 cases and the annual usage is 41,901 cases. The ordering cost (K) is $5 per order and the carrying cost of inventory (H) is $14 per unit. Determine the most cost-effective order quantity. (Round answers to 2 decimal places, e.g. 125.74.) Most cost effective order quantity Total Cost Special Order Northern Company regularly sells its only product for $34 per unit and has a 25% profit on each sale. The company has accepted a special order for a number of units, the production of which would use part of its unused capacity. The special order sales price is 50% of the normal price, and the profit margin is only 60% of the regular dollar profit. What, apparently, is Note: Round answers to two decimal places, when applicable. a. Northern's profit per unit on the special order? $ b. Northern's variable cost per unit? $ c. Northern's average fixed cost per unit on regular sales? $ Check Differential Analysis In each of four independent cases, the amount of differential revenue or differential cost is as follows (parentheses indicate decreases): 2 3 Increases (decreases) in: Revenue Costs 1 4 $36,000 $0 ? ? ?? $(20,000) $0 For each case, determine the missing amount that would be necessary for the net differential amount to be: a. $22,000 Use a negative signs with answers to reflect decreases. Increases (decreases) in: 1 2 3 4 Revenue Costs $36,000 $0 $ $ $ $(20,000) $0 b. ($9,000) Use a negative signs with answers to reflect decreases. Increases (decreases) in: 1 2 3 4 Revenue Costs Check $ $36,000 $ $0 $ $(20,000) $ $0

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