Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Richard's Sporting Goods needs to fill an online order for 190 hockey sticks. The manager is considering shipping the order by truck to the customer

image text in transcribed
image text in transcribed
Richard's Sporting Goods needs to fill an online order for 190 hockey sticks. The manager is considering shipping the order by truck to the customer in Wisconsin, at a carrier charge of \$115. The delivery will take ten days and the order is paid on delivery (Richard's doesn't get paid until the sticks are recelved). The hockey sticks are valued at $95 for each stick and Richard's uses a 30 percent annual inventory carrying charge. a. Use the formula Total Cost = in-transit holding cost + freight cost. Note; the term "transit inventory cost" is used interchangeably with "in-transit holding cost". What will be the total cost of the shipment? (Use 365 days in a year. Do not round intermediate calculations. Round your answers to 2 decimal places.) b-1. If the shipment could be delivered in only 2 days at a cost of $260, then what will be the total cost? (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) b-1. If the shipment could be delivered in only 2 days at a cost of $260, then what will be the total cost? (Use 365 days in a year, Do not round intermediate calculations. Round your answer to 2 decimal places.) b-2. If the manager chose the above option, how much money would be saved or lost? (Round your answer to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems Controls And Processes

Authors: Leslie Turner, Andrea B. Weickgenannt, Mary Kay Copeland

5th Edition

1119989485, 9781119989486

Students also viewed these Accounting questions

Question

Create a Fishbone diagram with the problem being coal "mine safety

Answered: 1 week ago