BBQT1013: Misuse and abuse of trade discounts infringe on fair trade laws and can cost companies stiff fines and legal fees: Business Mathematics Assignment, CUM, Malaysia

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. 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

Get MBA Assignment Help on BBQT1013: Business Mathematics by Malaysia Assignment Help. our brilliant writers have years of experience to write step-by-step error-free and 100% plagiarism-free solutions on ENT 300 Fundamentals Of Entrepreneurship UITM Assignment, MGT555 Business Analytics Assignment, and BUSN6120 Managerial Economics Assignment at market price.

Answer

Recent Solved Questions

Online Exam & Assignment Writing Services

51770+ Orders Delivered

4.9/5
5 Star Rating

Confidential & Secure Assignment Help For

Group Assignment Help

Online Exam -Test & Quiz

Cheapest Price Quote

Diploma & Certificate Levels

Semester & FYP Papers

Summative & Individual

GBA & Reflective

Last Minute Assistance

Sample Assignment Download

ACC116 Introduction To Cost Accounting Assignment Example UiTM Malaysia
In this course, you will learn the basic concepts of cost accounting at an operational level. You'll be introduced to key terms and principles in order for us both to…
Accounting
CSC413 Introduction To Interactive Multimedia Assignment Sample UiTM Malaysia
There are three basic elements of interactive multimedia: text, images, and sound. Text is the most important element because it provides information to the user. Images are used to convey…
Computer & It

UP TO 15 % DISCOUNT

Instant Paper Writing Services by Native Malaysia Writers

Plagiarism Free Solutions
100% Original Work
24*7 Online Assistance
Native PhD Experts
Hire a Writer Now

Get Assistance for Assignments, online Exam, and Projects Writing