Question

From a marginal analysis perspective, what is the inventory carry cost for andrews if the company carries one additional unit of adam in inventory at the end?

Answer 1

.From a marginal analysis perspective, the inventory carry cost for andrews if the company carries one additional unit of adam in inventory at the end is tetravalent

Answer 2

CORRECT QUESTION:

From a marginal analysis perspective, what is the inventory carrying cost for Andrews if the company carries one additional unit of Adam in inventory at the end? What is an equation that I can use to calculate carry cost if carrying costs are $12$% of the average unit cost of production? My material costs are $$16.81$ per unit and my labor costs are $$9.80$ per unit. What other costs do I need to take into consideration? Multiple choice possibilities: A) $$1.85$ B) $$15.40$ C) $$3.19$ D) $$6.38$

ANSWER:

The required value for one additional unit is $$3.19$.

Step-by-step explanation:

Given: Carrying costs are $12$%

          Material cost is $$16.81$ per unit

          Labor cost is $ $9.80$ per unit

To find The Cost of carrying one additional unit at the end.

Solution:

We need to take into consideration only the variable cost of making one more unit.

The other costs will not be taken into consideration.

We need to add the material cost and the labor cost which will give us $26.61$.

The carrying cost is given at $12$% which is $12%$% on $26.61$.

When calculated we get $3.1932$ which when rounded off gives us $3.19$.

Therefore, the cost of carrying one more unit is $ $3.19$. which is the third option given to us.

PROJECT CODE: #SPJ3