A companys holding cost is 16 percent per year. Its annual inventory turns are 10. The company

Question:

A company’s holding cost is 16 percent per year. Its annual inventory turns are 10. The company buys an item for $40. What is the average cost (in $) to hold each unit of this item in inventory?

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

Step by Step Answer:

Related Book For book-img-for-question

Operations Management

ISBN: 9781260547610

2nd International Edition

Authors: Gerard Cachon, Christian Terwiesch

See More Books

Question Posted: Aug 12, 2020 02:02 AM

See More Questions

Suppose a retailers annual inventory turns are 7.5. What are its days-of-supply of inventory?
Apples days-of-supply of inventory are 10.5. What are its annual inventory turns?
Navel County Choppers, Inc., is experiencing rapid growth. The company expects dividends to grow at 16 percent per year for the next 11 years before leveling off at 4 percent into perpetuity. The...
Consider a tank containing a liquid, and the rate of change of the liquid's height (h) with respect to time (t) is proportional to the difference between the current height and a reference height....
Using a chemical procedure called differential pulse polarography, a chemist measured the peak current generated (in microamperes) when a solution containing a given amount of nickel (in parts per...
Who would you rather assign to manage a foreign office of your business? Would you rather have a home-country, host-country, or third-country national? Why?
Wire 1, with mass $0.010 \mathrm{~kg}$ and length $1.0 \mathrm{~m}$, has a square cross section and is initially at rest on a table. It is connected by flexible leads to a battery and carries a...
Vertical analysis (common-size) percentages for Vallejo Company's sales, cost of goods sold, and expenses are listed here. Did Vallejo's net income as a percent of sales increase, decrease, or remain...
1. A scientific committee is to be formed form 6 Indians and 8 foreigners, which includes at least 2 Indians and double the number of foreigners as Indians. Then the number of ways the committee and...
Tyler, a self-employed taxpayer, travels from Denver to Miami primarily on business. He spends five days conducting business and two days sightseeing. His expenses are $400 (airfare), $150 per day...
An online shoe retailers annual cost of holding inventory is 35 percent. The firm operates with a days-of-supply of 20 days, and assume there are 365 days per year. What is the inventory holding cost...
A computer companys yearly inventory cost is 40 percent (which accounts for the cost of capital for financing the inventory, warehouse space, and the cost of obsolescence). Last year, the company had...
Evaluate the integral. x cos (x*)/sin(x) dx
Sweeten Company had no jobs in progress at the beginning of the year and no beginning inventories. It started, completed, and sold only two jobs during the year-Job P and Job Q. The company uses a...
The top player on the Crabs is Hanson Edelmann and they eam $189,500 per season. Assuming this is their entire income answer the following questions using the table above: What is their total income...
What do you believe are the top five characteristics of a good leader? What are the top five for a good manager? Discuss the similarities and differences between a manager and a leader. In what ways...
PW of Alternative For the following alternatives, answer the questions below. Incremental B/C when B/C Ratio compared with alternative Costs. $ Benefits, $ Disbenefits, $ J K L M J 20 22 4 0.90 C...
content area top Part 1 Consumers may evaluate the amount of effort needed to make a particular choice then tailor the amount of cognitive effort needed to get the job done. This approach most...
Jamel and Jennifer have been married 30 years and have filed a joint return every year of their marriage. Their three daughters, Jade, Lindsay, and Abbi, are ages 12, 17, and 22 respectively and all...
If 2 5 9 - k 5 8 = 2 5 8 , what is the value of k?
IT Computer Services assembles its own brand of personal computers from component parts it purchases overseas and domestically. IT sells most of its computers locally to different departments at...
The manager of Biggs Department Store has four employees available to assign to three departments in the store: lamps, sporting goods, and linen. The manager wants each of these departments to have...
The manager of Biggs Department Store has four employees available to assign to three departments in the store: lamps, sporting goods, and linen. The manager wants each of these departments to have...
Company name is Walmart, Inc. here is the link https://www.sec.gov/ix?doc=/Archives/edgar/data/104169/000010416923000020/wmt-20230131.htm Overview 1. The financial statements for your company are...
Congress would like to increase tax revenues by 19 percent. Assume that the average taxpayer in the United States earns $54,000 and pays an average tax rate of 15 percent. Required: a. If the income...
Best Solutions is a retail merchandiser selling computer equipment. Best uses the gross method of accounting for inventory purchases and sales, a perpetual inventory system with LIFO inventory...

A companys holding cost is 16 percent per year. Its annual inventory turns are 10. The company

Question:

Step by Step Answer:

4 purchase 10 ...View the full answer

Operations Management

Students also viewed these Business questions