Question
The following data refer to various annual costs relating to the inventory of a single-product company that requires 10,000 units per year: Cost per unit
The following data refer to various annual costs relating to the inventory of a single-product company that requires 10,000 units per year:
|
| Cost per unit |
| Order cost | $ .05 |
| Transportation-in on purchases | .18 |
| Storage | .16 |
| Insurance | .10
|
|
| Total per year |
| Interest that could have been earned on alternate investment of funds | $800 |
What is the annual carrying cost per unit?
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Survey of Accounting
Authors: Edmonds, old, Mcnair, Tsay
2nd edition
9780077392659, 978-0-07-73417, 77392655, 0-07-734177-5, 73379557, 978-0073379555
