Calculating annual holding cost rate

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Reference no: EM1336952

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) Calculate the annual holding cost rate for FFF

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

(b) Calculate the total annual holding costs for FFF

Total annual holding costs = $.

Reference no: EM1336952

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