From a marginal analysis perspective, what is the inventory carry cost for Andre

Question

From a marginal analysis perspective, what is the inventory carry cost for Andrews if the company carries one additional unit of Ate in inventory at the end? Select: 1 $1.20 $9.98 $1.92 $3.85 Production Information 2nd Shift Auto Unit & mation Capacity Primary Units Inven Age Pfmn Size Material Labor Contr. Over Next Next Plant ame Segment Sold tory Revision Date Dec31 MTBF Coord Coord Price Cost Cost Marg. time Round Round Utiliz 772 219 11/14/20 17 1.1 28000 12.7 9.6 S42.00S18.81S9.80 3896 22% 4.0 714 12196 Thrift 1.368 761 4/13/2015 5. 1 20000 5.2 14.9 S28.00 S8.13S7.90 33% 90% 6.0 1.130188% Attic Core 1.827 54 12/9/2016 2.2 22000 7.9 12.2 S32.00 S11.60 S8.98 35% 50% 5.0 1.200 149% Alan Nano 921 287 11/9/2017 1.124000 10.8 7.6 S40.00 S16. 13 S10.29 33% 42% 4.0 728 141% pple Elite Ate Beetle Thrift 1,730 22 6/28/20 18 3.5 14000 5.5 14.6 S20.00 S6.85S2.82 51% 100% 9.0 1.000 19896 Core 1.885 1411/30/2017 1.2 16000 8.1 12.0 S22.00 S10.01S5.84 31% 100% 7.0 1.150 19896 Oat Nano 700 161 12/22/2017 1.1 18000 10.0 8.3 S31.00 S13.84S8.24 38% 25% 6.0 750124% 604 137 11/5/2017 1.1 20000 12.0 10.1 S35.00 S14.36S7.09 38% 8% 5.0 800 107% est ent Nano 1.127 91 11/12/20 17 2.2 23000 8.9 9.4 S30.00 SI 3.98S9.50 25% 93% 5.0 570 19196 Cla Elite One Nano 959 215 12/22/2017 1.0 23000 10.5 7.6 S37.00 SI 5.79 S8.50 34% 27% 5.0 850125% rea Elite 435 149 12/13/2017 1.9 25000 12.1 10.2 S38.00 SI 5.87 S7.73 41% 0% 5.0 70064% 864 194 12/5/2017 1.0 25000 12.5 9.8 S39.00 S16.39 S7.95 37% 6% 5.0 950105% eft Thrift 1.338 240 12/11/20 17 2.8 17000 6.3 13.8 S19.00 S8.40S4.03 41% 33% 8.0 1,050 132% im Thrift 1.871 290 12/19/2017 2.8 17000 6.5 13.6 S19.00 S8.81S4.22 37% 57% 8.0 1.250 155% ot Drum Core 1,414 87 11/19/20 17 1.2 20000 9.6 11.3S28.00 S12.39S7.38 30% 93% 6.0 950 191% Core 1,287 152 12/3/2017 1.2 18000 8.9 10.8 S27.00 S11.88S7.38 30% 93% 6.0 900 19196

Explanation / Answer

Total variable cost = material cost + labor cost = $8.13 + $7.09 = $16.03

The carrying cost for one unit = % carrying cost x Total variable cost

% carrying cost is not given in this question. Normally, it is given in this project as 24%. So, the carrying cost of one unit will be $16.03 x 24% = $3.85

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