Compute the accounts payable period

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XYZ is a retailer and sells 115,000 units per year. It purchases from a single supplier. Fixed cost per order is $815 and carrying cost is $15 per unit.

Suppose XYZ orders 6,000 units per order from the supplier. Calculate the sum of carrying cost and the shortage cost.

Compute the Accounts Payable (A/P) period based on the following information:

Accounts Payable = $29,552

Cost of Goods Sold = $22,695

Assume 365 days

Reference no: EM132460196

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