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San Diego State University Operations And Supply Chain Management Assignment Help - Imelda Sanchez

Question - Imelda Sanchez, manager of the Arias Division of PoncA? Chemical, is evaluated based on the
division's return on investment and residual income. Near the end of November 2010, she was
reviewing the division's financial information as well as some activities projected for the remainder of
the year. The information she was reviewing follows.
1. Annual sales were projected at 100,000 units, each with a selling price of $30.
Sanchez has received a purchase order from a new customer for 5,000 units. The purchase order
states that the units should be shipped on January 3, 2011, for arrival on January 5.
2. The division's 2010 beginning inventory was 500 units, each with a cost of $11.
Purchases of 99,500 units have been made steadily thro ...Read More

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