What is the annual carrying cost per unit


The following data refer to various annual costs relating to the inventory of a single-product company that requires 10,000 units per year:
Cost per unit
Order cost $ .05
Transportation-in on purchases .18
Storage .16
Insurance .10
Total per year
Interest that could have been earned on alternate investment of funds $800


What is the annual carrying cost per unit?

 

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Accounting Basics: What is the annual carrying cost per unit
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