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Suppose Jones Corporation in the above problem determined that its annual inventory carrying cost 5 18 percent. The item unit cost was as follows:

Item 1 5 $25.00
Item 2 5 $60.00
Item 3 5 $5.00
Item 4 5 $10.00
Item 5 5 $1.00

Compute the dollar values for the information in the above table, determine the annual inventory carrying cost for each item, and the total annual inventory carrying cost.

Operation Management, Management Studies

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