What are total shortage costs

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Reference no: EM132056032

1. ABC Company writes 38 checks a day for an average amount of $730 each. These checks generally clear the bank in 5 days. In addition, the firm generally receives an average of $11,392 a day in checks that are deposited immediately. Deposited funds are available in 2 days. What is the firm's net float?

2. ABC Company sells 3,807 chairs a year at an average price per chair of $180. The carrying cost per unit is $20.38. The company orders 230 chairs at a time and has a fixed order cost of $97.3 per order. The chairs are sold out before they are restocked. What are the total shortage costs?

Reference no: EM132056032

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