Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Show all work Compute the cash flow lost for order fill rate of 70, 80, and 99 percent. Use the following information. 100 units per

Show all work

image text in transcribed

Compute the cash flow lost for order fill rate of 70, 80, and 99 percent. Use the following information. 100 units per order (average) 25,000 orders per year Pretax profit per unit is $I00 Pretax profit per order is $10,000 Invoice deduction per order is $250 Percentage of incomplete orders back-ordered is 70% Back order costs per order: administrative = $25.00; rehandling = $50.00; redelivery = $100.00 Percentage of incomplete orders cancelled is 30% Use this formula Cash Flow Lost = (Number of Incomplete Orders Back-Ordered times Back Order Cost per Order) + (Number of Incomplete Orders Cancelled times Lost Pretax Profit per Order) + (Number of Incomplete Back-Ordered times Invoice Deduction per Order)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Radical Reporting Writing Better Audit Risk Compliance And Information Security Reports

Authors: Sara I. James

1st Edition

1032106042, 978-1032106045

More Books

Students also viewed these Accounting questions

Question

1. Outline the listening process and styles of listening

Answered: 1 week ago

Question

4. Explain key barriers to competent intercultural communication

Answered: 1 week ago