Asked by Tiana Hailey on Jun 05, 2024
Verified
Suppose that a product's value is $2000. The manufacturer experiences a holding cost of 3% per month. The firm ships the product across country by truck, and it arrives ten days later. The shipping cost is $80 per unit. What is the holding cost on each unit shipped? (Assume 30 days per month.)
Holding Cost
The expense associated with maintaining inventory, including storage, insurance, depreciation, and opportunity costs, among others.
Shipping Cost
The charges incurred for transporting goods through different modes of transportation such as air, sea, or land.
- Calculate holding cost for shipped goods based on the percentage rate and value.
Verified Answer
TA
Learning Objectives
- Calculate holding cost for shipped goods based on the percentage rate and value.