What is the annual carrying costs of post card inventory

Assignment Help Finance Basics
Reference no: EM133111997

Post Card Depot, an large retailer of post cards, orders 5,198,874 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 16 times over the next year. Post Card Depot receives the same number of post cards each time it orders. The carrying cost is $0.07 per post card per year. The ordering cost is $317 per order. What is the annual carrying costs of post card inventory (round the answer to two decimal places)?

Reference no: EM133111997

Questions Cloud

Looking at the perspective of npv : If you were an athlete negotiating a contract, would you want a big signing bonus payable immediately and smaller payments in the future, or vice versa?
Prepare the journal entry to correct the balances : Included in SLC's Inventory balance are $7,000 of office supplies held in SLC's warehouse. Prepare the journal entry to correct the balances
Advantages and disadvantages of using of derivative contract : Zeta, an automotive battery manufacturer, uses Zinc as a manufacturing input. Zinc costs presently Rs 275 per kg and Zeta uses around 20 metric tonnes of zinc p
Cost optimality in financing activities : Why companies fail to meet cost optimality in financing activities.
What is the annual carrying costs of post card inventory : What is the annual carrying costs of post card inventory (round the answer to two decimal places)?
What is the minimum number of cartons per year : Assume that the price per carton is $16.80. What is the minimum number of cartons per year that can be supplied and still break even
Annual total inventory management costs : What is the annual total inventory management costs of post card inventory?
What is the total deferred tax liability at december : The Company has taxable income of P800,000 for 2016. The income tax rate is 30%. What is the total deferred tax liability at December
Calculate the cash flow from investments : Slick makes an initial year 0 investment of $10 million in inventories of plastic and steel for its blade plant. Then in year 1 it accumulates an additional $20

Reviews

Write a Review

Finance Basics Questions & Answers

  Identify the problems of the discounted cash flow

Identify the problems of the discounted cash flow (DCF) analysis for valuing a project and explain the reasons that managers might use real options analysis

  Compute the price of the call option

A European Call Option has 3 months till maturity, an exercise price of $200, a spot price of $200, and the stock price volatility is 40% p.a..

  Determine the rate of return on equity

Ohio Quarry, Inc., has $12 million in assets. Its expected operating income (EBIT) is $2 million and its income tax rate is 40 percent. If Ohio Quarry finances 20 percent of its total assets with debt capital, the pretax cost of funds is 10 percen..

  Comment on relation between the coupon rate and the duration

In the spreadsheet below, create a Data Table in which the duration is computed as a function of the coupon rate (coupon = 0%, 1%, ... , 11%).

  What must the coupon rate be on mertons bonds

Merton Enterprises has bonds on the market making annual payments, with 17 years to maturity, and selling for $956. At this price, the bonds yield 9.1 percent.

  What is single-period return of wilson

Wilson just purchased a security for $120, and is expecting a $2 dividend before selling it for $140. What is his single-period return (holding period return)?

  What benefits will the umuc haircuts business realize

What benefits will the UMUC Haircuts business realize if you implement an enterprise-wide system? Identify how Myra as the manager will benefit from having additional information available

  Price of the product when it was scarce

What is the product, and why do you think it became scarce? What happened to the price of the product when it was scarce?

  Find the current 10-year bond rate using a google search

Find the current 10-year bond rate using a Google search - Find the average return of an S&P500 Index Fund,

  What are the components in valuing a preferred stock

What is the importance of a cumulative dividend feature to preferred stockholders?

  Compare the after-tax returns for a corporation

Compare the after-tax returns for a corporation that invests in preferred stock with a 12% dividend yield versus a common stock with no dividend but a 16% capit

  The chief financial officer of a home health agency

The chief financial officer of a home health agency needs to determine the present value of a $120,000 investment received at the end of year 20.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd