2020 S01 P03 EXCEL

Following on from the previous scenario, Junior Jimmy Juicers Ltd (JJJ) furthermore requires your assistance in determining the following:

  • The sales prices based on the mark-up percentages as determined by the juice size.
  • Whether a reorder of stock needs to be processed.

The decision to reorder stock is based on a minimum reorder quantity level, which is set at 30 units of stock. Anything below 30 units of stock should indicate that a reorder of stock needs to take place.

They currently order the enerjuice products from an undisclosed supplier.

In addition, JJJ’s management team is considering investing an amount of money in order to purchase a new juice-making machine that will refine the process of mixing the various juice flavours with the energy supplements to create the new enerjuice. They are slightly unsure about the values to consider. JJJ is a registered VAT vendor.

You were issued with the following sales & inventory spreadsheet report:

JJJ’s management team also provided you with the following additional information:

a) Where applicable, the Value Added Tax (VAT) rate is 15%, refer to cell C4.
b) JJJ does not have the finances to purchase a new juicer at this point but would like to invest an amount, which could provide the amount of money needed to purchase the new machine in two (2) years’ time. The details are as follows:

  • The investment period required to purchase the new juicer is two (2) years, refer to cell C6.
  • The annual interest rate that will receive is 12.4%, refer to cell C7.
  • The projected purchase price of the new juicer in two (2) years’ time, refer to cell C8
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