question archive What is the annual carrying cost per unit? * Format: 1
Subject:AccountingPrice:9.82 Bought3
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
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