During a recent inventory analysis, Great Taste White Corporation determined that it has an annual demand of 16,200 units of coffee bean orders, a cost per order of P3,200, and an ideal total annual carrying cost of inventories of P14,400. The management is deciding whether or not to look for cheaper alternatives for storing stock. As the management accountant, your management asked you to compute the carrying cost per unit to aid them in decision-making for the next operational year. Required: As the Cost/Management accountant, Calculate the firm's optimal or acceptable carrying cost per unit?

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To calculate the optimal or acceptable carrying cost per unit for Great Taste White Corporation we c... View the full answer