Given the following percentage costs of carrying inventory, calculate the annual carrying cost if the average inventory

Question:

Given the following percentage costs of carrying inventory, calculate the annual carrying cost if the average inventory is $1 million. Capital costs are 10%, storage costs are 6%, and risk costs are 9%.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Introduction To Materials Management

ISBN: 978-9386873248

8th edition

Authors: Arnold J. R. Tony, Gatewood Ann K., M. Clive Lloyd N. Chapman Stephen

See More Books

Question Posted: Jun 25, 2019 09:24 AM

See More Questions

A company wishes to establish an EOQ for an item for which the annual demand is $800,000, the ordering cost is $32, and the cost of carrying inventory is 20%. Calculate the following: a. The EOQ in...
If the assets are $2,000,000 and liabilities are $1,600,000, what is the owners equity?
The local fire department uses 10,000 alkaline flashlight batteries per year, which cost $4 each. The cost of ordering batteries is estimated to be $50. The current interest rate suggested by the...
Vicky's income for 2020-21 consists of her UK salary of 50,270 and rents from overseas property (net of 30% withholding tax) of 3,500. Vicky is UK resident in 2020-21 and she is not a Scottish...
Water and diethyl ether are immiscible liquids. Charged compounds dissolve in water, and uncharged compounds dissolve in ether. a. What pH would you make the water layer in order to cause both...
Break class into small groups of three to five students. Have students read the discussion question and discuss their answers within their groups. Students may reference the text or use their...
What is the mirror-image rule?
The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a three-month period ending June 30, 2014, are as follows: Instructions 1. Record the inventory, purchases, and...
Direct Labor Budgeted $14,200, Actual $14,200, Indirect Labor Budgeted 5,800, Actual 5,400, Utilities Budgeted 1,900, Actual 2,200, Rent Budgeted 3500, Actual 3500, Marketing Budgeted 150, Actual...
Martin Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Martin Manufacturing's operations: Current Assets as of December 31...
A company is using a carrier to deliver goods to a major customer. The annual demand is $2,500,000, and the average transit time is 10 days. Another carrier promises to deliver in 7 days. What is the...
A florist carries an average inventory of $12,000 in cut flowers. The flowers require special storage and are highly perishable. The florist estimates capital costs at 10%, storage costs at 25%, and...
In Problems 2936, determine whether the given function is linear, exponential, or neither. For those that are linear functions, find a linear function that models the data; for those that are...
The fertilizer most used by farmers growing wheat increases in price. What impact will this have on supply, demand, and equilibrium price and quantity in the market for wheat?
Consider the interaction between Canada and the OPEC countries discussed in class, where OPEC acts as the leader and Canada as the follower. However, now consider the inverse demand for oil P (Q) =...
Regarding Health Policy Indicators, the most important indicator of political commitment is the allocation of adequate resources with the following relevant indicators, EXCEPT: a. Proportion of GDP...
Compare the answer to /4. m n=0 compute the following sum for m = 200. (-1) 1 + 2n
df command is used to a . . how much disc space a file uses b . . how much used disk space a file system has c . . how much free disk space a file system has d . . Both B and C
Craig Company produces electronic components for cell phone producers. The receiving department at Craig has eight clerks who process incoming goods. The total cost of their salaries is $440,000. The...
Describe basic managerial approaches to implementing controls and how these are implemented.
Which population is more likely to have a positive population growth momentum? Which is more likely to have a negative population growth momentum? Explain your answers? Postreproductive (45 and...
How is carrying capacity of the Earth system related to land degradation and agricultural productivity?
What is food insecurity? What regions of the world have the greatest food insecurity?
You have a new accountant. Where would you go to invite your accountant to your company file?
How will you record this transaction? a. What happens to your total assets if you buy a car in cash?
Panama Company prepared the following flexible overhead budget where PH is process hour. Identify the overhead cost per PH for indirect labor, maintenance. Also identify the overhead cost of 12,000...

Given the following percentage costs of carrying inventory, calculate the annual carrying cost if the average inventory

Question:

Step by Step Answer:

Annual ca...View the full answer

Introduction To Materials Management

Students also viewed these Earth sciences questions