BBQT1013: Business Mathematics Assignment, CUM, Malaysia: Misuse and abuse of trade discounts infringe on fair trade laws and can cost companies stiff fines and legal fees
University | City University Malaysia (CUM) |
Subject | BBQT1013 Business Mathematics |
Assignment Brief and Guidance:
Misuse and abuse of trade discounts infringe on fair trade laws and can cost companies stiff fines and legal fees. One way to avoid misuse is to establish the same discount for everyone and give rebates based solely on volume.
Green Manufacturing, Inc., uses this policy for equipment sales to companies that develop photographs. For example, one developing machine component, a special hinge, sells for $3.10 and is discounted to $3 with the purchase of 15,000 pieces per month.
In an effort to run more cost-efficient large jobs and capture market share, Green Manufacturing will give an incentive for higher volume. It offers a 5% rebate on orders of 20,000 pieces per month, or a 20 cents a piece rebate for orders of at least 22,000 pieces per month. The increased volume needed for a rebate is determined by market research that tells Green Manufacturing factors such as the volume a customer is capable of ordering per month, and the volume and cost of the same part a customer currently buys from other suppliers.
Are You Searching Answer of this Question? Request Malaysian Writers to Write a plagiarism Free Copy for You.
The rebate amount is determined by Green Manufacturing’s profit margin and the company’s ability to acquire sufficient raw materials to produce larger volumes without raising production costs. In some industries, this is called a bill-back because the buyer receives credit toward the next order rather than a rebate check.
However, Green manufacturing, Inc. uses a machine to produce the hinge and since the discounts are implemented, the order increased dramatically. Green Manufacturing, Inc. is planning for a second machine to overcome scarce resources on production capacity. The machines cost $225,000 and can be used for 8 years. Meanwhile, the supplier also offers lease service on a 30% cost increment for lease price and repayable for 8 years with an interest rate
of 10%. Upon acquisition, the old machine can be trade-in for $5,000.
Tasks:
1. Explain the following and provide an appropriate example:
A. Trade
B. Discount and rebate
C. Single and multiple discounts
D. Cost and profit
E. Depreciation
F. Interest rate
G. Time value
H. Different investments
2. Calculate, and round to the nearest hundredth, the revenue, discount amount, and rate assuming if the purchase is:
A. 16,000 pieces
B. 20,500 pieces
C. 24,000 pieces
Get Solution of this Assessment. Hire Experts to solve this assignment for you Before Deadline.
Get Help By Expert
Many Malaysian university students are stressed with their BBQT1013 Business Mathematics assignment task. students want someone to do my assignment. assignmenthelper.my has 1652+ best assignment helper in malyasia for helping malaysian students.
Recent Solved Questions
- BIS2212: Social and Professional Responsibilities Case Study, SU, Malaysia Based on the case study above analyze the character of Superintendent Hashim in terms of his moral values
- UBFF2013: Write a review of the profitability ratio and market ratio (Year 2020-2021) of the FIVE (5) stocks: Business Finance Assignment, UTAR, Malaysia
- How might Nestlé strategize for the global expansion of its sustainability initiatives: marketing management Assignment, IIU, Malaysia
- UKFB3053 Financial Markets & Regulations Assignment, UTAR, Malaysia Discuss whether it is rationale for the Royal Commission of Inquiry (“RCI”) to revisiting the allegations on the matter in 2017
- BKAN1013 Basic Accounting Assignment, UUM, Malaysia Gurkha Consultancy Sdn Bhd is a company that provides consultation to entrepreneurs
- Media Law Case Study, AeU, Malaysia The plaintiff, the publisher of a free five-days-a-week national English-language newspaper called ‘the Sun’
- LEVEL 5: ABC Development Sdn. Bhd. is a main contractor appointed by Majlis Amanah Rakyat (MARA) for “Proposed Design: Site specific Project Management Plan (PMP), Report, CIDB, Malaysia
- Project Cost Auditing Assignment, UITM, Malaysia Discuss an issue/ problem/ process improvement that occurs in the current construction project
- ENG1090: Foundation Mathematics Assignment, MUM, Malaysia Radioactive materials, such as Plutonium-239, Radium-226, and others, decay exponentially. The amount of radioactive material
- Constrained physiotherapy practice in rehabilitation setting: Professional Development Assignment, MU, Malaysia