Question

Irvine Regional Hospital (IRH) consumes 500 boxes of bandages per week. The price of bandages is $70 per box. The cost of processing an order is $60, and the cost of holding one box for a year is 15% of the value of the material. What is the unit holding cost h of bandages

Answer 1

the unit holding cost is $10.5

Step-by-step explanation:

The computation of the unit holding cost h of bandages is shown below;

= Price of bandages × holding cost percentage

= $70 × 15%

= $10.5

By multiplying the price of bandages with the holding cost percentage we can get the unit holding cost h of bandages

Hence, the unit holding cost is $10.5