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Frederick's Farm Factory (FFF) currently marintains an average inventory valued at $3,400,000. The company estimates its capital cost at 10 percent, its storage cost at 4.5 percent, and its risk cost at 10 percent.

(a) find out the annual holding cost rate for FFF

Annual holding cost rate = % (Round your answer to 1 decimal place.)

(b) find out the total annual holding costs for FFF

Total annual holding costs = $.

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  • Reference No.:- M942066

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