Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Post Card Depot, an large retailer of post cards, orders 4,750,480 post cards per year from its manufacturer. Post Card Depot plans on ordering post
Post Card Depot, an large retailer of post cards, orders 4,750,480 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 18 times over the next year. Post Card Depot receives the same number of post cards each time it orders. The carrying cost is $0.08 per post card per year. The ordering cost is $423 per order.
What is the annual total costs of post card inventory? The answer is $18,171.62. Could someone please explain how to get to that answer and the formula used?
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