1. Suppose a firm purchases goods on credit terms of 3/10, net 15, and the firm always takes discounts. The cost of using the funds for six days is:?
a. ?3.00%.
b. ?4.18%.
c. 3.09%.?
d. ?0%.
e. ?3.92%.
2. Orangetree Pharma's demand for test tubes is 72,000 units. If the lead time for placing an order is 5 days, then an order should be placed at an inventory level of: (Assume 360 days in a year)?
a. ?2,500 units.
b. ?1,250 units.
c. ?1,000 units.
d. ?800 units.
e. 625 units.?