12. Brent custom products pays 7.6% annual interest on one half year of it's $3,000,000 annual inventory value. It also pays 0.65% personal property tax on the total value of inventory. Other carrying costs include $26,000 insurance,$51,000 in labor costs, and 19,000
In overhead costs. What is the carrying cost per $1 of annual inventory, to the nearest tenth of a cent.???
The stone heating company has an annual inventory value of $1500,000. Because of financial problems, stone has to finance it's entire inventory at 17% annual interest. If stone had been able to maintain an excellent credit rating,it would have had to borrow money for only 40% of the inventorys annual value. The interest rate charged by a lender would have Been 8.2%.
14. To the nearest cent what amount could stone have paid for the carrying charges of interest for each dollar o inventory if it had an excellent credit rating.
16. The new markets company updated its stock ordering system by installing $580,000
Of new hardware and buying new software at a cost $230,000. New markets expects the new system will reduce ordering costs by 20%. The company now spends $19.70 per purchase order to process 60,000 purchase orders a year. How many years will it take new market yo recover the costs of the new ordering system, to the nearest tenth year??????
In overhead costs. What is the carrying cost per $1 of annual inventory, to the nearest tenth of a cent.???
The stone heating company has an annual inventory value of $1500,000. Because of financial problems, stone has to finance it's entire inventory at 17% annual interest. If stone had been able to maintain an excellent credit rating,it would have had to borrow money for only 40% of the inventorys annual value. The interest rate charged by a lender would have Been 8.2%.
14. To the nearest cent what amount could stone have paid for the carrying charges of interest for each dollar o inventory if it had an excellent credit rating.
16. The new markets company updated its stock ordering system by installing $580,000
Of new hardware and buying new software at a cost $230,000. New markets expects the new system will reduce ordering costs by 20%. The company now spends $19.70 per purchase order to process 60,000 purchase orders a year. How many years will it take new market yo recover the costs of the new ordering system, to the nearest tenth year??????
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12. [3000000(7.6%+0.65%)+26000+51000+19000]/… = $0.1145 = 11.45%
14. Current cost = 1500000x0.17 = $255,000
Could have been cost = 1500000x0.40x0.082 = $49,200
Could have been Carrying charges = 49200/1500000 = $0.0328
16 Total installation cost = 580000+230000 = $810000
Current annual expenditure = 19.70x60000= $1,182,000
Likely annual reduction in ordering cost = 20 % of 1,182.000 = $236,400
Number of years required for recover = 810000/236400 = 3.426 years.
14. Current cost = 1500000x0.17 = $255,000
Could have been cost = 1500000x0.40x0.082 = $49,200
Could have been Carrying charges = 49200/1500000 = $0.0328
16 Total installation cost = 580000+230000 = $810000
Current annual expenditure = 19.70x60000= $1,182,000
Likely annual reduction in ordering cost = 20 % of 1,182.000 = $236,400
Number of years required for recover = 810000/236400 = 3.426 years.