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24 November, 10:59

Probett's Garage uses 120 boxes of cleaning cloths a year. The boxes cost $6 each. Ordering cost is $3 and holding cost is 10 percent of purchase cost per unit on an annual basis. Determine the total costs of the cleaning cloths.

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  1. 24 November, 14:39
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    Answer: $730.2

    Explanation:

    Let the total cost of cleaning clothes = X

    Other variables include:

    Total cost of boxes = $6*120

    =$720

    Ordering cost = $3

    Holding costs = (10/100 * 6) 12

    =$7.2

    Total costs of cleaning clothes =

    The cost of boxes+ordering cost+holding cost

    =720+3+7.2 = $730.2
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