Asked by Hannah Charlton on Apr 27, 2024
Verified
Suppose that a product's value is $3000. The manufacturer experiences a holding cost of 1% per month. The firm ships the product across country by truck, and it arrives fifteen days later. The shipping cost is $100 per unit. What is the holding cost on each unit shipped? (Assume 30 days per month.)
Holding Cost
The expenses associated with storing unsold goods or materials, including warehousing, insurance, and deterioration or obsolescence.
Shipping Cost
The expense incurred to transport goods from one place to another, typically paid by the seller or the buyer.
- Compute the storage expense for shipped items by applying the percentage rate and their monetary worth.
Verified Answer
KC
Learning Objectives
- Compute the storage expense for shipped items by applying the percentage rate and their monetary worth.