Calculate annual cost of holding these screws in inventory

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Reference no: EM131765266

Electric Sheep uses 1/4-20 UNC-2A socket head cap screws for various components in its product line. Currently, Electric Sheep uses 2,000,000 of the 1/4-20 cap screws per year. The purchase price for these cap screws is $58 per 1000 screws. The ordering cost for these various items is $32 per order and the hold cost rate is 2%. Calculate the annual cost of holding these screws in inventory.

Reference no: EM131765266

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