Kathmandu Products orders materials from its suppliers 12 times per year, at a re-ordering costs of $250 (per order). The company's average inventory is valued at $700,000. What is Kathmandu's annual inventory carrying cost, assuming an ICC rate of 20%?
Answer
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a. |
$140,000
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b. |
$600
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c. |
cannot be determined
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d. |
$3,000
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