
i added the cost of new machine into the cash flow even though it wasn't stated. la la la..
for cost of sugar.. i did add purchase cost.. took it from the question below. so it was holding cost + ordering cost + purchase cost ($75 000) = cost of sugar
cost of running out of sugar : loss of goodwill of customer
loss from production thus loss of sales
loss of customers
JIT - i wrote crap
ar the discount thing i got net gain of 500 +. (100/98) ^ (365/(60-14) - 1 = 17.** %
discount earned = 0.02 * $75 000
=$1 500
interest cost - i forgot i got this sorry
net gain - 500 +