You Company Needs to Ship Large Piece of Construction Equipment

question 8

Multiple Choice

You company needs to ship large piece of construction equipment which costs about $500,000 to a customer across the country.Shipping by rail costs $3,000 and will take 8 days.Your company uses 20 % to determine the annual inventory carrying cost.What are the approximate total costs of shipping and in-transit inventory?

• A)$3,000.
• B)$2,192.
• C)$5,192.
• D)$10,000.

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Definitions:

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The selling of goods in large quantities at lower prices, typically to be retailed by others.

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