4. Peter's order quantity for tocino is 5,000 kilos. Petermaintains a safety stock of Tocino at 500 kilos, and itsorder point is 1,500 kilos.What would be the total annual carrying costs,assuming the carrying cost per unit is P.80

Carrying cost is the amount that a business spends on holding inventory over a period of time.

Answered: 4. Peter's order quantity for tocino is…

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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4. Peter's order quantity for tocino is 5,000 kilos. Peter maintains a safety stock of Tocino at 500 kilos, and its order point is 1,500 kilos. What would be the total annual carrying costs, assuming the carrying cost per unit is P.80