Solved: Post card depot an large retailer of post cards orders, Finance Basics

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Post card depot an large retailer of post cards orders

Finance: Carrying Costs and Ordering Costs

Question

Post Card Depot, an large retailer of post cards, orders 4,325,690 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 15 times over the next year. Post Card Depot receives the same number of post cards each time it orders. The carrying cost is $0.13 per post card per year. The ordering cost is $306 per order.

What is the annual total costs of post card inventory?

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Finance Basics: Post card depot an large retailer of post cards orders

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