Bulldogs Inc. expects to use 96,000 litters of paint annually costing P12 per litter. Inventory carrying cost is equal to 25% of the purchase price. The lead time for placing the order is 1 week, and Bulldogs Inc. holds 4,800 litters of paint as safety stock. The company's usage of inventory is at a constant rate. If the company orders 4,000 litters of paint per order, what is the cost of carrying inventory? *
Bulldogs Inc. expects to use 96,000 litters of paint annually costing P12 per litter. Inventory carrying cost is equal to 25% of the purchase price. The lead time for placing the order is 1 week, and Bulldogs Inc. holds 4,800 litters of paint as safety stock. The company's usage of inventory is at a constant rate. If the company orders 4,000 litters of paint per order, what is the cost of carrying inventory? *
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Bulldogs Inc. expects to use 96,000 litters of paint annually costing P12 per litter. Inventory
carrying cost is equal to 25% of the purchase price. The lead time for placing the order is 1
week, and Bulldogs Inc. holds 4,800 litters of paint as safety stock. The company's usage of
inventory is at a constant rate. If the company orders 4,000 litters of paint per order, what is
the cost of carrying inventory? *
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