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Samira Sports specializes in cricket bats that sell especially Well early summer season. A projection of units sold is as follows: March April May June Total 3,000 7,000 11,000 9,000 30,000 The company decides to go with level production to avoid being out of merchandise. They will produce the 30,000 items over the four months at a level production of 7,500 per month. Inventory costs $20 per unit and will be financed through the bank at 6% per year. What is the total financing cost for the four months?

Samira Sports specializes in cricket bats that sell especially Well early summer season. A projection of units sold is as follows: March April May June Total 3,000 7,000 11,000 9,000 30,000 The company decides to go with level production to avoid being out of merchandise. They will produce the 30,000 items over the four months at a level production of 7,500 per month. Inventory costs $20 per unit and will be financed through the bank at 6% per year. What is the total financing cost for the four months?

FINANCIAL ACCOUNTING
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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Samira Sports specializes in cricket bats that sell especially Well early summer season. A projection of units sold is as follows: March April May June Total 3,000 7,000 11,000 9,000 30,000 The company decides to go with level production to avoid being out of merchandise. They will produce the 30,000 items over the four months at a level production of 7,500 per month. Inventory costs $20 per unit and will be financed through the bank at 6% per year. What is the total financing cost for the four months?
Transcribed Image Text:Samira Sports specializes in cricket bats that sell especially Well early summer season. A projection of units sold is as follows: March April May June Total 3,000 7,000 11,000 9,000 30,000 The company decides to go with level production to avoid being out of merchandise. They will produce the 30,000 items over the four months at a level production of 7,500 per month. Inventory costs $20 per unit and will be financed through the bank at 6% per year. What is the total financing cost for the four months?
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