Suppose your company imports 10,000 t-shirts from a Chinese wholesaler for $3.25 per shirt. Your business consultant
Question:
Suppose your company imports 10,000 t-shirts from a Chinese wholesaler for $3.25 per shirt. Your business consultant in China charges 25% per shirt along with a delivery order charge of .50 per shirt. Your cost of capital is 12% and all other related charges such as storage, container charges and insurance amount to $3.61 annually. Answer the following concerning Economic Order Quantity.
a. What is your total carrying cost?
b. Inventory carrying cost?
c. Inventory ordering cost?
d. Total inventory cost?
e. EOQ?
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
a Computation of the Total Carrying cost 361112 404 per shirt b Com...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
2+ Reviews
10+ Question Solved
Related Book For 
Corporate Finance Core Principles and Applications
ISBN: 978-1259289903
5th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
Question Posted:
