A company, Photo Haven currently orders 15,000 hinges per month from E-Mach Manufacturing at MYR3.00 each: Business Mathematics Coursework, UUM, Malaysia

University Universiti Utara Malaysia (UUM)
Subject BUSINESS MATHEMATICS
  1. A company, Photo Haven currently orders 15,000 hinges per month from E-Mach Manufacturing at MYR3.00 each, which is about half of what they buy each month from other suppliers. Evaluate these situations:
    i. If they move 5,000 pieces per month from another company to E-Mach Manufacturing, what will be their rebate amount, rate, and difference from the previous discount?
    ii. If they move all required pieces per month from another company to E-Mach Manufacturing, what will be their rebate amount, rate, and difference from the previous discount?
    iii. Justify in terms of Photo Haven, how many pieces should they purchase from E-Mach Manufacturing, Inc. that would maximize the rebate. Support with proper calculation and assume Photo Haven receives another rebate from the current supplier.
  2. Contrast different types of discounts and the discount policy currently implemented in E-Mach Manufacturing, Inc. and comment on its effectiveness in terms of profit-maximizing and market penetrating.
  3. Design a better discount policy for E-Mach Manufacturing, Inc. and justify the effectiveness of the policy.
  4. Calculate the depreciation schedule if E-Mach Manufacturing, Inc. acquires: i. ONE (1) machine ii. TWO (2) machines iii. THREE (3) machines which the third machine can trade in for MYR8,500 and receive a trade discount of 8.5%
  5. Propose to E-Mach Manufacturing, Inc. whether they should acquire a new machine or lease the machine to overcome scarce resources on production capacity.
  6. Support your recommendation in task no. 7 with critical justification on diverse perspectives in business, finance, economy, etc.

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