1- Your CFO gives you this data and asked you tohelp him by calculating the Inventory Carrying Rate:Inventory Costs = $40,000Inventory Value = $310,000Opportunity Cost = 10%Insurance = 4%Taxes%3D7%Show your Calculation:2- Calculate the Total Annual Cost knowing thefollowing data:Total annual cycle-inventory cost (C) :Lot Size (Q) : 560Holding Cost per unit per year (H) : 20$Annual Demand (D) : 35 600Ordering cost per Lot : 55 $

1) Inventory Carrying rate = {Inventory Costs ÷ Inventory Value} + Opportunity Cost + Insurance +…

Answered: 1- Your CFO gives you this data and…

Business

Accounting

1- Your CFO gives you this data and asked you to help him by calculating the Inventory Carrying Rate:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1- Your CFO gives you this data and asked you to
help him by calculating the Inventory Carrying Rate:
Inventory Costs = $40,000
Inventory Value = $310,000
Opportunity Cost = 10%
Insurance = 4%
Taxes
%3D
7%
Show your Calculation:
2- Calculate the Total Annual Cost knowing the
following data:
Total annual cycle-inventory cost (C) :
Lot Size (Q) : 560
Holding Cost per unit per year (H) : 20$
Annual Demand (D) : 35 600
Ordering cost per Lot : 55 $

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