Given that: Sales = $200,000,000 %3D Transportation cost $12,000,000 Warehousing cost = $3,000,000 Inventory carrying cost rate (W) = 30% %3D Cost of goods sold $90,000,000 %3D Other operating costs $50,000,000 Average Inventory (Al) = $10,000,000 Accounts receivable $30,000,000 %3! What is the total operating cost? 50,000,000 O 48,000,000 42,000,000 32,000,000 68,000,000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Given that:
Sales $200,000,000
%3!
Transportation cost = $12,000,000
%3D
Warehousing cost = $3,000,000
Inventory carrying cost rate (W) = 30%
Cost of goods sold = $90,000,000
%3D
Other operating costs $50,000,000
%3D
Average Inventory (Al) = $10,000,000
Accounts receivable $30,000,000
%3!
What is the total operating cost?
50,000,000
48,000,000
42,000,000
32,000,000
O 68,000,000
Transcribed Image Text:Given that: Sales $200,000,000 %3! Transportation cost = $12,000,000 %3D Warehousing cost = $3,000,000 Inventory carrying cost rate (W) = 30% Cost of goods sold = $90,000,000 %3D Other operating costs $50,000,000 %3D Average Inventory (Al) = $10,000,000 Accounts receivable $30,000,000 %3! What is the total operating cost? 50,000,000 48,000,000 42,000,000 32,000,000 O 68,000,000
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