Question: please answer both, will upvote Given: The Blue Duck Co. had a monthly average inventory for the year 2022 of $35 million. For planning for
Given: The Blue Duck Co. had a monthly average inventory for the year 2022 of $35 million. For planning for their k value for 2023 they have determined the following costs: a. The cost that the company can get to investing their capital =6%. b. Their 60,000sq. f. warehouse rent per month =$0.50 per sa.f. c. Warehouse labor with FB=2 warehouse indirect labor persons at $3,200/ me each person d. Utilities in warehouse =$0.32/sq. ft. per month e. Total company inspection costs =$4,000/me and 20% of the company inspection is done on receipts or stock items in the warehouse. f. Warehouse equipment depreciation costs =$1,500/ month. g. Insurance for inventory =1.5% per year h. Inventory obsolescence =1.0% per year. i. Security =$8,000/ month 1. (A) What is the projected total cost to carry inventory for 2023 ? Show all sub-costs ( 8 points) (B) What is the k rate ( 3 decimals)? ( 2 points)
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