Determine the total annual inventory costs

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Question - Brady Sporting Goods, Inc. buys baseballs at P200 per dozen from its wholesaler. Brady will sell 36,000 dozen baseballs evenly throughout the year. Brady desires a 10% return on its inventory investment. In addition, rent, insurance, taxes, - etc., for each dozen baseballs - in inventory is P4.00. The administrative cost involved in handling each purchase order is P100. Assuming Brady ordered in order sizes of 800 dozen evenly throughout the year, determine the total annual inventory costs to sell 36,000 dozen baseballs?

Reference no: EM132973090

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