Compute net savings of outsourcing

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Reference no: EM13107669

Compute net savings of outsourcing, of the warehousing and inventory mgt. DVD4less paid$1,950,000 for transport, warehousing cost average $ 1, 460,000. $30 million debt outstanding w/ interest 10% annually. Total operating costs 750,000and 50,000 held on cash at all times. Inventory average 5 million with cost rate 25 % C count receivable 250,000 Fixed asset 64 million third party logistics 500,00 annually and by outsourcing company saved 760,000 tax rate 40 %.Kindly answer.

Reference no: EM13107669

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