The Reddog Shirt Company anticipates that 3,200 cases of zippers will be used during the year to
Question:
The Reddog Shirt Company anticipates that 3,200 cases of zippers will be used during the year to meet production needs.
The following additional information is known:
On average, 15 boxes of zippers are used per production day.
On average, it takes 9 days from the date an order is placed with a supplier to receipt of the zippers.
On average, zippers cost $4 per box.
Average cost to place an order with a supplier -‐‐ $10
Average cost to receive and inspect an order from a supplier: $15.
Average annual warehouse cost of holding a box of zippers in inventory. $0.80
Average annual interest rate – 5%
What is the total annual cost of holding a box of zippers in inventory? (maintenance cost)
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill