Post Card Depot, an large retailer of post cards, orders 7,802,200 post cards pe

Question

Post Card Depot, an large retailer of post cards, orders 7,802,200 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 8 times over the next year. Post Card Depot receives the same number of post cards each time it orders. The carrying cost is $0.14 per post card per year The ordering cost is $294 per order. What is the annual total inventory management costs of post card inventory? Round the answer to two decimal places) Your Answer Answer Save Page 13 of 25 Next Page Save All Responses Go to Submit Quiz

Explanation / Answer

Total cost of inventory Management = (7,802,200 × $0.14 / 8) + ($294 × 8)

= ($1,092,308 / 8) + $2,352

= $136,538.50 + $2,352

= $138,890.50.

Total cost of inventory Management is $138,890.50.

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.