Estimate of inventory holding cost per year in percentage

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Reference no: EM131681924

Firm BlueMountain Inc. carries product A as inventory. The total warehousing cost is $59,203 in 2014. Due to obsolescence, this inventory lost its market value by $23,396 in 2014. The manager estimated that the average inventory level for product A is 1,005 units during 2014. The unit purchasing cost of A is $500. In addition, the risk free interest rate is 5% per year. What is your estimate of the inventory holding cost per year in percentage?

Reference no: EM131681924

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