Compute annual inventory carrying cost

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Reference no: EM13105836

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

	a.	$140,000
	b.	$600
	c.	cannot be determined
	d.	$3,000

Reference no: EM13105836

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