Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. A company has the following annual costs; wages for purchasing are $400,000, purchasing expenses are $20,000, customs and brokerage costs are $30 per order,
1. A company has the following annual costs; wages for purchasing are $400,000, purchasing expenses are $20,000, customs and brokerage costs are $30 per order, the cost of financinat inventory 5 6%, storage costs are 9% and risk costs are 15%. The average imventory is $150,000 and 2500 orders are placed per year. ( 4 marks) a. What are the annual ordering costs? b. What are the annual carrying costs
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started