What is annual total costs of post card inventory

Assignment Help Financial Management
Reference no: EM131346519

Post Card Depot, an large retailer of post cards, orders 8,745,470 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 15 times over the next year. Post Card Depot receives the same number of post cards each time it orders. The carrying cost is $0.10 per post card per year. The ordering cost is $206 per order. What is the annual total costs of post card inventory?

Reference no: EM131346519

Questions Cloud

What is expected dividend per share for next year : Warr Corporation just paid a dividend of $1.5 a share (that is, D0 = $1.5). The dividend is expected to grow 9% a year for the next 3 years and then at 3% a year thereafter. What is the expected dividend per share for each of the next 5 years?
Down payment on new car-what is the most expensive car : You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is $350. The loan will have a 8% APR based on end-of-month payments. What is the most expensive car you could afford if you finance it for 48 months?
Extensive analysis of the healthcare financial performance : Thompson & Anders, Inc. wish to enhance the stock portfolio of the Radiology Department. After an extensive analysis of the healthcare financial performance, the following cost structure was determined. Suppose the riskiness of the stock decreases, w..
About the economic order quantity : Cheeseburger and Taco Company purchases 11,287 boxes of cheese each year. It costs $24 to place and ship each order and $8.83 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. Calculate..
What is annual total costs of post card inventory : Post Card Depot, an large retailer of post cards, orders 8,745,470 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 15 times over the next year. Post Card Depot receives the same number of post cards each time it..
Currently considering the purchase of some new machinery : The Pre-Tech Company is currently considering the purchase of some new machinery. The machinery will have a useful life-time of 9 years and will cost $ 600,000 to be paid in the current period. The appropriate discount rate for this project is 16%. I..
Citigroup sells a call option on euros : Citigroup sells a call option on euros (contract size is €500,000) at a premium of $0.04 per euro. If the exercise price is $1.34 and the spot price of the euro at expiration is $1.36, what is Citigroup’s profit (loss) on the call option?
What is initial investment outlay : Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $17 million, and production and sales will require an initial $5 million investment in net operating working capital. The company’s tax rate is 40%. W..
Compute the revenue-sales price and net sale volume variance : Assume that Casio Computer Company, LTD. sells handheld communication devices for $110 during August as a back-to-school special. The normal selling price is $160. The standard variable cost for each device is $60. Compute the revenue, sales price, s..

Reviews

Write a Review

Financial Management Questions & Answers

  What are interest and principal portions in second payment

A 15-year, $160,000 mortgage has a rate of 5.7 percent. What are the interest and principal portions in the first payment? What are the interest and principal portions in the second payment?

  The binomial model is better for complex situations

The Black Scholes model is simpler to use, but for complex situations, the binomial model is the necessary tool. The Black Scholes model is the simplest to use and the best used for complex situations. the binomial model is better for complex situati..

  What is the firms after-tax cost of debt

5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,550 face value and a 6% coupon, semiannual payment ($46.5 payment every 6 months). The bonds currently sell for $845.87. If the firm's marginal tax rate is 40%, wha..

  What is the standard deviation of the portfolio

A portfolio has 40% of its value in IBM shares and the rest in Microsoft (MSFT). The volatility of IBM and MSFT are 40% and 30%, respectively, and the correlation between IBM and MSFT is -0.3. What is the standard deviation of the portfolio?

  Calculate the beta and standard deviation of stock

Consider the following information on Stocks I and II: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock I Stock II Recession .24 .030 ?.34 Normal .59 .340 .26 Irrational exuberance .17 .200 .44 The market risk pre..

  Weight of debt-common equity by current market value

Mel & Bud, Inc., is a printing company specializing in the production of coffee bags and frozen food bags. The company’s board has asked you to complete an analysis for their intended expansion into a new production space; Compute the weighted-averag..

  How much value does dollar billion investment create-destroy

Alcoa's weighted average cost of capital was around 12%, but its investments were earning returns closer to 5%. From 2010 to 2012, Alcoa invested roughly $1 billion in capital expenditures. Calculate the NPV of that investment using a 12% discount ra..

  Depreciated straight line to zero

A project costs $32,000, will be depreciated straight line to zero over its 3 year life, and will require a net working capital investment of $9,000 up front. The project generates OCF of $24,000 every year. The fixed assets sold for $6,000 at the en..

  Calculate the company cost of equity

Fred's lawn and garden's last dividend per share was $2.78. the stock sells for $16 per share, and the expected growth rate for the company is 7%. Calculate the company's cost of equity.

  What is the stock price for each company

Red, Inc., Yellow, Corp., and Blue Company each will pay a dividend of $2.65 next year. The growth rate in dividends for all three companies is 5%. The required return for each company's stock is 8%, 11% and 14% respectively.  What is the stock price..

  The common stock of auto deliveries sells

The common stock of Auto Deliveries sells for $26.96 a share. The stock is expected to pay $1.90 per share next year when the annual dividend is distributed. Auto Deliveries has established a pattern of increasing its dividends by 4.7 percent annuall..

  What will be the amount of your monthly payment

Having graduated from UCF with a degree in finance, you can now afford to buy a $120,000 house. Suppose you pay 20% as a down payment and finance the rest for 30 years at 8%. Assuming house payments occur at the end of each month, what will be the am..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd