Vertex Logistics Inc. carries an average annual inventory valued at $4.2 million. The company estimates the following cost components: . Cost of capital: 9% Storage cost: 6% Risk cost: 5% What is the total annual cost to carry this inventory?

Vertex Logistics Inc. carries an average annual inventory valued at $4.2 million. The company estimates the following cost components: . Cost of capital: 9% Storage cost: 6% Risk cost: 5% What is the total annual cost to carry this inventory?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

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Hi expert please given correct answer with General accounting

Vertex Logistics Inc. carries an average annual inventory
valued at $4.2 million. The company estimates the
following cost components:
.
Cost of capital: 9%
Storage cost: 6%
Risk cost: 5%
What is the total annual cost to carry this inventory?

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