BU547 Lecture Notes - Lecture 8: Working Capital, Cash Flow, Board Foot
Document Summary
Annual relevant costs of current purchasing policy and jit purchasing policy for margro corporation. 20% per year ,000 of average inventory per year. 20% per year sh inventory per year. . 50b contribution margin per unit 20,000 units. Difference in favour of jit purchasing a = warehouse rental revenue, [(75% 12,000) . 50]. bcalculation of unit contribution margin. Variable manufacturing cost per unit (,050,000 900,000 units) Variable marketing and distribution cost per unit (,000 900,000 units) Supplier evaluation and relevant costs of qualify and timely deliveries. Solution exhibit 19-39 presents the ,450 annual relevant costs difference in favour of purchasing from quality sports. Copeland should buy the footballs from quality sports. Annual relevant costs of purchasing from big red and quality sports. per unit 12,000 units per year. . 20 per unit 12,000 units per year. 15% per year cost per unit 100 units of average inventory per year;
