Answer: $3 per unit per year
Explanation:
Using the EOQ model we will have to divide the Total Carrying Cost ( Annual Inventory Carrying Cost ) by the Average inventory to find the inventory carrying cost per unit per year.
First then, let us calculate the Total Annual Inventory Carrying Cost with the following formula,
Annual Inventory Carrying Cost = total annual setup or ordering cost .
Now the figure provided needs to be divided in 2 before it has both the carrying and ordering cost.
So Annual inventory carrying cost = total annual inventory /2
= 600/2
= 300
Now to calculate the Average Inventory which is,
Average Inventory = EOQ/2
= 200/2
= 100
The Inventory Carrying Cost per unit will therefore be,
= 300 / 100
= $ 3
If you need any clarification do comment or react.
General and legal and political environment
Answer:
I'm high
Explanation:
I'm trying to wipe without tp
Answer:
variable costs; diminishing marginal returns
fixed costs; do not change
Explanation:
Variable costs are costs that changes with the level of output. If output increases, variable cost increases and if output falls,it falls. Examples of variable costs are wages, cost of production materials etc.
Fixed cost don't vary with production. Example rent.
They do not increase or decrease with production.
I hope my answer helps you