Fredericks Farm Factory (FFF) currently maintains an average inventory valued at $2,900,000. The company estimates its capital
Question:
Frederick’s Farm Factory (FFF) currently maintains an average inventory valued at $2,900,000. The company estimates its capital cost at 8 percent, its storage cost at 4 percent, and its risk cost at 3 percent.
a) Calculate the annual holding cost rate for FFF.
b) Calculate the total annual holding costs for FFF.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (2 reviews)
a Annual holding co...View the full answer
Answered By
Aysha Ali
my name is ayesha ali. i have done my matriculation in science topics with a+ . then i got admission in the field of computer science and technology in punjab college, lahore. i have passed my final examination of college with a+ also. after that, i got admission in the biggest university of pakistan which is university of the punjab. i am studying business and information technology in my university. i always stand first in my class. i am very brilliant client. my experts always appreciate my work. my projects are very popular in my university because i always complete my work with extreme devotion. i have a great knowledge about all major science topics. science topics always remain my favorite topics. i am also a home expert. i teach many clients at my home ranging from pre-school level to university level. my clients always show excellent result. i am expert in writing essays, reports, speeches, researches and all type of projects. i also have a vast knowledge about business, marketing, cost accounting and finance. i am also expert in making presentations on powerpoint and microsoft word. if you need any sort of help in any topic, please dont hesitate to consult with me. i will provide you the best work at a very reasonable price. i am quality oriented and i have 5 year experience in the following field.
matriculation in science topics; inter in computer science; bachelors in business and information technology
_embed src=http://www.clocklink.com/clocks/0018-orange.swf?timezone=usa_albany& width=200 height=200 wmode=transparent type=application/x-shockwave-flash_
4.40+
11+ Reviews
14+ Question Solved
Related Book For
Operations Management An Integrated Approach
ISBN: 9781119497387
7th Edition
Authors: R. Dan Reid, Nada R. Sanders
Question Posted:
Students also viewed these Business questions
-
Fredericks Farm Factory (FFF) currently maintains an average inventory valued at $3,400,000. The company estimates its capital cost at 10 percent, its storage cost at 4.5 percent, and its risk cost...
-
The sales of a popular mouthwash at Merkle Pharmacies over the past 6 months have averaged 1,700 cases per month resulting in 20,400 cases per month, which is the current order quantity. Merkle's...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
What pricing system is used to price the water you use at your college or university? Does this pricing system affect your behavior about water use (length of showers, etc.)? How? Could you recommend...
-
Matt Albin, Ryan Peters and Seth Ramsey invested $82,000, $49,200 and $32,800, respectively, in a partnership. During its first calendar year, the firm earned $135,000. Required Prepare the entry to...
-
What is meant by ethics, and what types of factors influence ethical behavior?
-
The planning matrix from a $2^{k-p}$ design is below. The four factors investigated are A, B, C, and D. TABLE 6.13 : Planning Matrix for Exercise 6.16 b. What is the defining relation? What is the...
-
Soldner Health Care Products Inc. expects to maintain the same inventories at the end of 2010 as at the beginning of the year. The total of all production costs for the year is therefore assumed to...
-
Critical values for quick reference during this activity. Confidence level Critical value 0.90 z* = 1.645 0.95 z* = 1.960 0.99 z* = 2.576 469062.3288744.qx3zqy7 Jump to level 1 A poll for a statewide...
-
A local nursery, Greens, uses 1780 bags of plant food annually. Greens works 50 weeks per year. It costs $12 to place an order for plant food. The annual holding cost rate is $6 per bag. Lead time is...
-
Which type of inventory cost includes the interest paid on money borrowed? a) Item cost b) Holding cost c) Capital cost d) Storage cost
-
Would all economists oppose price controls? Why or why not?
-
Corporate social responsibility (CSR) is described as the conscience of business. However, there is a vast difference in how businesses view CSR, with some undertaking activities that endanger the...
-
The Simpson Business is considering buying a machine that would increase the business' cash receipts by \(\$ 3300\) per year for five years. Operation of the machine would increase the business' cash...
-
Consider the current ecological footprint of the Earth, where we currently need one-and-a-half planets to approach sustainability in terms of resource use. Given that the world's population will...
-
Tina Harper is considering investing \(\$ 7840\) in some farmland a group of her friends is planning to buy. Her share of the expected selling price of the land after five years would be \(\$...
-
These are four sets of cash flows: a A single \(\$ 450\) cash inflow at the end of year 6 . b A series of \(\$ 800\) cash inflows at the end of years \(1,2,3,4\) and 5 . c A cash inflow of \(\$...
-
The Magic Shoppe sells games, books, and party favors. Most customers charge their purchases to national credit cards. Following is a summary of The Magic Shoppes total credit card sales for July and...
-
How many years will it take a $700 balance to grow into $900 in an account earning 5%?
-
Using the given information and the beginning inventories from Problem 4, calculate the minimum replenishment time for the 100 Q Models.
-
Using the information given and assuming that 2500 Model A fountains are scheduled for completion, calculate the gross requirements of each component. Use the beginning inventories given.
-
Fill in the partially completed inventory record shownhere. Item: AB500 Lot Size Rl: L4L Children: AB501, AB511, AB521 Lead Time: 2 weeks Parent: None 2 15 250 150 Gross Requirements: Scheduled...
-
An inventive child named Nick wants to reach an apple in a tree without climbing the tree. Sitting in a chair connected to a rope that passes over a frictionless pulley (see figure below), Nick pulls...
-
What angle (in radians) should the The maximum angular size of the planet Jupiter, as seen in the sky, is = 50.1". If Jupiter is known to have a diameter of = 1.40 10 "km, then what is the distance...
-
2 . Assume that a person is standing - 4 m below the ground and throws a water ballon with avelocity of 1 4 m / s at an angle of = 2 2 \ deg . If the balloon is launched from a height of - 2 m below...
Study smarter with the SolutionInn App