question archive What is the annual carrying cost per unit? * Format: 1

What is the annual carrying cost per unit? * Format: 1

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What is the annual carrying cost per unit? * Format: 1.11 The following data refer to various annual costs relating to the inventory of a single-product company: Unit transportation-in on purchases P0.20 Storage per unit 0.12 Insurance per unit 0.10 Annual interest foregone from alternate investment of funds P1,500 Annual number of units required 10,000

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P0.37

Step-by-step explanation

Carrying cost per unit = Storage cost per unit+ Insurance cost per unit + (Interest / Units)

=0.12+0.10+(1500/10000)

=0.12+0.10+0.15

=0.37

The annual carrying cost per unit is P0.37