LO.10 (Appendix: carrying costs) Determine the carrying costs for an item costing $6.80, given the following per-unit cost information: Storage cost $0.24 Handling cost 0.28 Production labor cost 1.70 Insurance cost 0.44 Opportunity cost 8% of investment

LO.10 (Appendix: carrying costs) Determine the carrying costs for an item costing $6.80, given the following per-unit cost information: Storage cost $0.24 Handling cost 0.28 Production labor cost 1.70 Insurance cost 0.44 Opportunity cost 8% of investment

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

LO.10 (Appendix: carrying costs) Determine the carrying costs for an item costing
$6.80, given the following per-unit cost information:
Storage cost
$0.24
Handling cost
0.28
Production labor cost
1.70
Insurance cost
0.44
Opportunity cost
8% of investment

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how do I explain this? Metric Score Percent of Total Possible Contribution Margin 4.7 /5 Plant Utilization 5.0 /5 Days of Working Capital 5.0 /5 Stock-out Costs 5.0 /5 Inventory Carrying Costs 3.6 /5 Overall Score 23.3 /25