Stargucks purchase (2 lbs.) packages of “regular” coffee beans from one of its suppliers at a cost of $10 each, and the

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Stargucks purchase (2 lbs.) packages of “regular” coffee beans from one of its suppliers at a cost of $10 each, and the

Post by answerhappygod »

Stargucks purchase (2 lbs.) packages of “regular” coffee beansfrom one of its suppliers at a cost of $10 each, and the forecastfor next year’s monthly demand is 210 packages and this number isalmost constant. Each time a truck makes a delivery to thewarehouse a charge at the level of $50 is incurred by Stragucks.Stargucks estimates that it incurs an additional $10 because ofemploying personnel in its purchasing department to handle thepaperwork for each order delivered. Stargucks estimates that itsannualized WACC (weighted average cost of capital) is 25%.
I have a-c I just need D (total annual cost) to be solvedplease! is posted down below:
d) What is the total annual cost of managing the packages ofregular coffee beans inventory in this warehouse?
Thanks!
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”