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?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 16E

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