What is the annual carrying costs of post card inventory

Assignment Help Financial Management
Reference no: EM13894241

Cheeseburger and Taco Company purchases 12,885 boxes of cheese each year. It costs $25 to place and ship each order and $7.01 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

What is the annual carrying costs of post card inventory.

Round the answer to two decimals.

Reference no: EM13894241

Questions Cloud

Discriminating auction and single-price auction : What is the difference between a discriminating auction and a single-price auction? How is the final price determined in a single-price auction? Why did the Treasury switch to a single-price auction?
Pre-tax annual return-worthwhile to make market in t-bills : A government securities dealer needs to make a 7% pre-tax annual return on $10 million of capital employed to make it worthwhile to make a market in T-Bills. If the bid discount on $10,000 face value, ninety day T-Bills is 3.50%, and the dealer can e..
Worker adjustment and retraining notification act : Select two (2) of the following acts: National Labor Relations Act (NLRA), Worker Adjustment and Retraining Notification (WARN) Act, Reduction in Force (Age), Age Discrimination in Employment Act (ADEA) and Older Workers Benefit Protection Act (OW..
Inverse demand and supply functions : Q1. Consider a market characterized by the following inverse demand and supply functions:
What is the annual carrying costs of post card inventory : Cheeseburger and Taco Company purchases 12,885 boxes of cheese each year. It costs $25 to place and ship each order and $7.01 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. What is t..
What taxable yield is equivalent to a municipal bond yield : What taxable yield is equivalent to a municipal bond yield of 5.8 percent if a taxpayer has a marginal tax rate of 43 percent?
An investment offers a total return : An investment offers a total return of 11 percent over the coming year. Bill Bernanke thinks the total real return on this investment will be only 7.4 percent. What does Bill believe the inflation rate will be over the next year?
Generating benefits of vertical integration : Read the excerpt below from an article titled "Delta buys refinery, becoming first airline to make own fuel" (Reuters, 5/1/2012). The more context­ specific your answers are the better. a. What might be the value­ generating benefits of this vertic..
A class that extends exception : Write a class that extends Exception and is called Too Many Occupants Exception. Have the Vehicle class matador for number of occupants throw such an exception if the number Of Occupants would exceed the maximum number of occupants for the vehicle

Reviews

Write a Review

Financial Management Questions & Answers

  Work patterns in the housekeeping department

Management has studied work patterns in the housekeeping department and estimates the number of hours to be worked as follows. Hours worked = (1,500 hours per month) + (0.50 × RVUs). For the coming month, management expects RVUs to be 5,800. What sho..

  Timeline detailing stream of cash flows

Consider the following timeline detailing a stream of cash flows: If the current market rate of interest is 8%, then the present value of this stream             of cash flows is closest to:

  Corporation is expected to pay the dividends

Far Side Corporation is expected to pay the following dividends over the next four years: $10, $8, $6, and $4. Afterward, the company pledges to maintain a constant 4 percent growth rate in dividends forever. If the required return on the stock is 14..

  What is the cost of goods sold for the company

Saunders Corp. has current liabilities of $500,000, a quick ratio of 0.92, inventory turnover of 6.8, and a current ratio of 1.3. What is the cost of goods sold for the company?

  Write an investment policy statement covering

Gary Lee Weinrib (Mr. W) is a 60 year old divorced musician. He is planning on retiring in the next two years. He will quit touring and recording. What is a potential concern regarding royalty income from a retiring musician that may need to be addre..

  Compute ms queens agi

Ms. Queen, age 21, is a full-time college student with an athletic scholarship that provides the following annual benefits: Tuition payment ...$12,800 Fees and books ...3,500 Room and board ...10,000 Ms. Queen works in the athletic department as a tr..

  Annual yield assuming the investment was held to maturity

An investor is looking to buy a $1,000,000 T-bill issue at an Ask Discount of 1.13 on January 22 for a maturity date of February 27 (36 days to maturity), what is the discount rate, dollar discount, purchase price, and the holding period yield and an..

  Annuity due-what is the cost of leasing

Annuity Due. Your landscaping company can least a truck for $8,000 a year (paid at year-end) for 6 years. It can instead buy the truck for $40,000. The truck will be valueless after 6 years. The interest reate your company can earn on its funds is 7%..

  Firms stock price fails to meet shareholders expectations

What are some actions an entrenched management might take that would harm shareholders? How is it possible for an employee stock option to be valuable even if the firm’s stock price fails to meet shareholders’ expectations?

  What is the market value of the firm prior to the recap

An all-equity business has 100 million shares outstanding selling for $20 a share. Management believes that interest rates are unreasonably low and decides to execute a leveraged recapitalization ( a recap). It will raise $1 billion in debt and repur..

  What is the new market value of company

Rights Offerings Again, Inc... Is proposing a rights offering. Presently, there are 490,000 shares outstanding at $75 each. There will be 80,000 new shares offering at $71 each. a) What is the new market value of the company?

  Show the cash flows on deal

Tony borrowed $10,000 from his sister at 8%, simple interest, and repaid the entire amount after 5 years. Show the cash flows on this deal.

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