A company, Photo Haven currently orders 15,000 hinges per month from E-Mach Manufacturing at MYR3.00 each: Business Mathematics Coursework, UUM, Malaysia
|Universiti Utara Malaysia (UUM)
- 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.
- 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.
- Design a better discount policy for E-Mach Manufacturing, Inc. and justify the effectiveness of the policy.
- 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%
- Propose to E-Mach Manufacturing, Inc. whether they should acquire a new machine or lease the machine to overcome scarce resources on production capacity.
- Support your recommendation in task no. 7 with critical justification on diverse perspectives in business, finance, economy, etc.
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