units 6700

price 215
1/10 3/10
net 30
discount 60%

revenues 1440500
average collection period 18 acc receivables
receivable turnover 20.27778
average receivables 71038.36
annual credit sales 29500000
average collection peiod 34 days

acc receiable turnover 10.74

average accounts receivable $ 2,747,945
credit terms 1/10, net 30
discount amount 65%

average collection period 17 days (average acc. receivable/credit sales*number of days in period

sales 1100 forecasts

price 1950
credit sales 25,740,000
acc receivable turnover 21.47
average acc receivable 1,198,849
ber of days in period
credit sales 36500 146000
average collection period 31

average daily sales 5214.286

average collection period 161642.9
terms 1/10, net 30
rate 0.010101
acc receivable turnover 18.25
EAR 20.13%
a. increase as rate per 30 days increase
rate 0.020408
acc receivable turnover 18.25
EAR 44.59%

b. decrease as acc recerivable turnover decrease

rate 0.010101
acc receivable turnover 12.16667
EAR 13.01%

c. increase as acc receivable turnover increase

rate 0.010101
acc receivable turnover 36.5
EAR 44.32%
average collection period 29 days
average daily receivables 91,300
average periodly receivables 2647700

receivable turnover 12.586207

credit sales 33324500
use 975
reorder 975
carrying cost per unit 6.25
fixed order cost 430

carrying costs average inventory*carrying cost per unit (Q/2)*CC

3,046.88
restocking cost fixed cost per order*number of orders F*(T/Q)
20640
EOQ
beg inventory 735
carrying cost per unit 26
fixed order costs 365

carrying costs 9555 average inventory*carrying cost per unit (Q/2)*CC

restocking costs 4380 fixed cost per order*number of orders F*(T/Q)
13935

Q* 498 497.6329
the company should decrease order size
company will sell 8820 per year
it will restock 17.71 times 17.72391
the restocking costs will be 6,464.46 6469.227
average inventory 249.00 248.8164
carrying costs 6,474.00 6469.227
total costs 12,938.46 12938.45