9.7. A company manufactures and sells a seasonal product. Based on the sales forecast that follows, calculate a level production plan, quarterly ending inventories, and aver- age quarterly inventories. Assume that the average quarterly inventory is the average of the starting and ending inventory for the quarter. If inventory carrying costs are $3 per unit per quarter, what is the annual cost of carrying this anticipation inventory? Opening and ending inventories are zero. Quarter 1 Quarter 2 Quarter 3 Quarter 4 Totals Sales 1000 2000 3000 2000 Production Ending Inventory Average Inventory Inventory Cost

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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9.7. A company manufactures and sells a seasonal product. Based on the sales forecast
that follows, calculate a level production plan, quarterly ending inventories, and aver-
age quarterly inventories. Assume that the average quarterly inventory is the average
of the starting and ending inventory for the quarter. If inventory carrying costs are $3
per unit per quarter, what is the annual cost of carrying this anticipation inventory?
Opening and ending inventories are zero.
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Totals
Sales
1000
2000
3000
2000
Production
Ending Inventory
Average Inventory
Inventory Cost
Transcribed Image Text:9.7. A company manufactures and sells a seasonal product. Based on the sales forecast that follows, calculate a level production plan, quarterly ending inventories, and aver- age quarterly inventories. Assume that the average quarterly inventory is the average of the starting and ending inventory for the quarter. If inventory carrying costs are $3 per unit per quarter, what is the annual cost of carrying this anticipation inventory? Opening and ending inventories are zero. Quarter 1 Quarter 2 Quarter 3 Quarter 4 Totals Sales 1000 2000 3000 2000 Production Ending Inventory Average Inventory Inventory Cost
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