Suppose that Al Ma'arif Group is engaged in manufacturing and sales of a seasonal product. Based on a sales forecast of 2000, 1000, 1000, and 4000 per quarter, calculate a level production plan, quarterly ending inventory, and average quarterly inventory. If inventory carrying costs are $10 per unit per quarter, what is the annual cost of carrying inventory? Assume that the opening and ending inventories are zero.

Suppose that Al Ma'arif Group is engaged in manufacturing and sales of a seasonal product. Based on a sales forecast of 2000, 1000, 1000, and 4000 per quarter, calculate a level production plan, quarterly ending inventory, and average quarterly inventory. If inventory carrying costs are $10 per unit per quarter, what is the annual cost of carrying inventory? Assume that the opening and ending inventories are zero.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 17P

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