case study HDT truck company

Poor Dog, Inc. borrowed $135,000 from the bank today. They must repay this money over the next six years by making monthly payments of $2,215.10. What is the interest rate on the loan? Express your answer with annual compounding.

Before allocating the fees, Komandor was buying 500,000 units at $0.45$/unit  duty fees = 500,000 x $0.45 x 0.09 = $20,250

For FRD line items 59a and 60 – not sure if fully loaded has been defined as 60K lbs., but anticipate these two line items will be addressed during the TD.

AAA Transportation is an interstate company that focuses on transporting wholesale products in refrigerated trailers around Midwest this company is located in Waukegan,WI. On the other hand, AAA Transportation has new owners that are planning to make some positive changes that can potentially raise the company's growth becoming more successful. The new owners want to add a delivery of nonperishable products, such as canned foods, to their delivery routes, allowing AAA to expand the area they cover and to provide expanded service to their existing customers. Taking in consideration that many of the routes do not require a full load, there would

Freight cost was also a problem when the shipping distance expended. Both stoves and ovens were bulky and weighed well over 300 pounds each. Thus,they were very expensive to ship.Bridgewater owned a fleet of trucks which had been expanded from 5 to 10 since the addition of wood ovens to the business. Even though the fleet represented about a $2 million investment. Shipping full – load orders in compnay owned trucks was not uneconomic. But more than hald of all shipments went out in partial loads using common carriers and contract haulers. Considering traffic management.dispathing fleet costs. freignt bills. packing cost and rental charges for public warehouse space. Total shipping costs were running about 17 % of sales in 1985.

a) As per exhibit -4, there was no cost allocation between Treasury and Metro divisions, hence transfer price will be:

After the calculations you end up coming out with a rate of 14.87%. The third and final part of question three asks what rate you will need if the interest is compounded semiannually. All you have to do is double the amount of terms and you will come out with a lower number of 7.177%. Since the interest is compounded semiannually that means that you will need to times that number by two and you come out with your final number of 14.35%.

2. If you had a payment that was due you in 5 years for $50,000 and you could earn a 5% rate of return, how much

Answer 1- The first question which shows the two new options how impact transfer and customer might freight cost and the answer for this question is given in first alternative and second alternative which is elaborated above.

In this case, you will be able to cover all of your fixed costs only by changing of sales mix, without changing the prices. Please keep in mind that you have some more variable operating costs, not covered by this calculation (see Table on p. 2). They can amount to more than $1,000, if you add depreciation for equipment and truck.

On June 1, 2006, the Luttman and Dowd Company sold inventory to the Ushman Corporation for $400,000. Terms of the sale called for a down payment of $100,000 and four annual installments of $75,000 due on each June 1, beginning June 1, 2007. Each installment also will include interest on the unpaid balance applying an appropriate interest rate. The inventory cost Foster $150,000. The company uses the perpetual inventory system.

Q9. Inventory carrying costs are based on the value of the product at the time it is held in inventory. When the product in sitting in the IDC Alliance Fort Worth Distribution Center, its value is a combination of purchase price plus any transportation costs to get it from the supplier to the DC plus in-transit carrying costs. On a per-unit bases (in dollars) what is the total inventory carrying cost for the safety stock and cycle stock inventory held at the Alliance Fort Worth Distribution Center if we purchase everything from Dong Hai Supply? From CousinsAg?

The cost associated with the physical transfer of goods is an essential piece of information in the negotiation of an international trade transaction. To maintain a product’s competitiveness, the seller must make sure that his cost is as low as possible. However, in any particular supply chain, this cost is made up of a number of cost elements corresponding to services that enable physical linkages between supply chain members. These elements cannot always be clearly quantified beforehand.

Although for the sake of convenience the defined terms “Seller” and “Buyer” are used here, consider changing the defined terms to the names of the parties (or a shortened form of their names) so as to avoid any potential confusion regarding the parties’ intention that this agreement does not create a binding contract for the sale of the business.

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