The following are the annual costs of Peter Corp. relating to Material A which required 40,000 units per year: Unit Cost Insurance cost $20 Storage cost 32 Freight in 36 Order cost 10 Interest that could have been earned on the alternative investment of funds $320,000 What is the annual carrying cost per unit?
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The following are the annual costs of Peter Corp. relating to Material A which required 40,000 units per year:
Unit Cost | |
Insurance cost | $20 |
Storage cost | 32 |
Freight in | 36 |
Order cost | 10 |
Interest that could have been earned on the alternative investment of funds $320,000
What is the annual carrying cost per unit?
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