Question
You work as a sales executive for a company called Karl's Crafts Inc. Karl's Crafts Inc. manufactures and sells various smallcrafts and sells them to
You work as a sales executive for a company called Karl's Crafts Inc. Karl's Crafts Inc. manufactures and sells various smallcrafts and sells them to large craft stores across Canada. BigBox Crafts Ltd. operates several large craft and craft supplystores across Canada. You are approached by Larry Box, the CEO of BigBox Crafts Ltd., who wants to buy products fromKarl's Crafts Inc. BigBox Crafts Ltd. tells you that they would like to buy a standard set of goods on the 15th of eachmonth: 10,000 Christmas snow globes; 10,000 piggy banks; and 5,000 stuffed giraffes. Karl's Crafts Inc. sells its snowglobes for $10.00 each; its piggy banks for $5.00 each; and its stuffed giraffes for $15.00 each. These prices do not includeGST and PST (or HST). However, Karl's Crafts Inc. provides a 10% discount on bulk orders over 10,000 units. Karl's CraftsInc. usually makes its products available for pickup from its factory (often referred to as Ex Works; meaning the buyer isresponsible for all shipping, taxes, insurance, and other costs). Karl's Crafts Inc. usually send invoices to buyers at the endof the month and expects payment within 15 days. BigBox Crafts Ltd. tells you that they have a standard form agreementthat they require sellers to use when buying products. They provide it to you and ask you to review it and provide anyconcerns. They also tell you that they would like the goods delivered to their processing center at 1234 Anywhere Blvd,Mississauga, ON.
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