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Gennadij [26K]
3 years ago
12

Probett’s Garage uses 120 boxes of cleaning cloths a year. The boxes cost $6 each. Ordering cost is $3 and holding cost is 10 pe

rcent of purchase cost per unit on an annual basis. Determine the total costs of the cleaning cloths.
Business
1 answer:
faust18 [17]3 years ago
3 0

Answer: $730.2

Explanation:

Let the total cost of cleaning clothes = X

Other variables include:

Total cost of boxes = $6×120

=$720

Ordering cost =$3

Holding costs = (10/100 ×6)12

=$7.2

Total costs of cleaning clothes =

The cost of boxes+ordering cost+holding cost

=720+3+7.2 = $730.2

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