Solution-Ordering and carrying costs

Ordering and carrying costs

Assignment Help Finance Basics

Reference no: EM131908359

Ordering and Carrying Costs

Ottis, Inc., uses 693,360 plastic housing units each year in its production of paper shredders. The cost of placing an order is $30. The cost of holding one unit of inventory for one year is $19. Currently, Ottis places 162 orders of 4,280 plastic housing units per year.

Required:

1. Compute the annual ordering cost.

2. Compute the annual carrying cost.

3. Compute the cost of Ottis's current inventory policy.

Reference no: EM131908359

Questions Cloud

What is the equivalent single replacement payment : What is the equivalent single replacement payment two-and-a-half years from now if interest is 2.4 % compounded annually question mark?

How would you measure reliance damages : Buyer B pays $10,000 to New Orleans grain dealer D in exchange for D's promise to deliver grain to buyer B's London office on October 1.

Calculate the return on equity ratio : LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2016 and 2017. Calculate the return on equity (after tax) ratio.

What is the difference between tax deduction and tax credit : What is the difference between a tax deduction versus a tax credit? Can everyone use the tax tables? Are there limitations on deductions

Ordering and carrying costs : Ottis, Inc., uses 693,360 plastic housing units each year in its production of paper shredders. The cost of placing an order is $30.

Which opportunity-cost damages are easier to implement : The actual choice of a damage measure often depends on practical problems, not theory. Give some examples of breached contracts in which opportunity-cost.

At what value should the land be recorded : On June 25, Ritts Roofing extended an offer of $250,000 for land that had been priced for sale at $300,000. At what value should the land be recorded

Net present value of the investment : The investment will cost you $ 5,215 today. If the appropriate Cost of Capital (quoted interest rate) is 11.3 %, what is the Net present Value of the investment

Limitations of ratio analysis : Explain THREE (3) limitations of Ratio analysis. What is the maximum loss BareBone could incur for buying a call option strategy?

User Account

All Pages

Ordering and carrying costs

Reference no: EM131908359

Reference no: EM131908359

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT