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Market Leader Intermediate 3rd edition SB

A jewellery retailer

A jewellery retailer wants to expand its range of suppliers. It is keen to negotiate new contracts with exciting producers who will give it excellent value and reliable service. Background Fashion House Inc., based in Miami, Florida, owns a chain of stores selling high-class jewellery products. Its best-selling lines are topof-the-range necklaces, bracelets and earrings, made by overseas manufacturers who have outstanding design capability. Its profit margin on most of these products is at least 80 per cent. Today is 1 October. The buying department of Fashion House wishes to purchase 5,000 necklaces and bracelets and 3,000 earrings. Delivery of the items, if possible, should be by 15 November, in time for the Christmas buying season. The company is confident of selling 3,000 necklaces and bracelets and 2,000 earrings and the remaining items should sell if prices are competitive and the demand is high. Fashion House has a temporary cashflow problem, so it wishes to pay for the goods as late as possible. Members of the buying department are now visiting companies in India, Peru and Chile. They are looking for a reliable supplier with whom they can build a long-term relationship. They have contacted three companies who have shown interest in doing business with them. scanned for Paul Jennings

Quantity Product features Unit cost (USS) Delivery Payment Discount Returned goods Guarantee Necklaces/bracelets: 2,000 of each item in stock Additional 3,000 necklaces and bracelets should be avaIlable by 15 November E'lrrings '' 3 000 available by 30 November . 0

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