How will that affect total inventory costs

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The Olde Town Microbrewery makes Townside beer, which it bottles and sells in its adjoining restaurant and by the case. It costs $1,700 to set up, brew, and bottle a batch of the beer. The annual cost to store the beer in inventory is $1.25 per bottle. The annual demand for the beer is 21,000 bottles and the brewery has the capacity to produce 30,000 bottles annually. If the microbrewery has only enough storage space to hold a maximum of 2,500 bottles of beer in inventory, how will that affect total inventory costs?

Reference no: EM131128477

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How will that affect total inventory costs : The Olde Town Microbrewery makes Townside beer, which it bottles and sells in its adjoining restaurant and by the case. It costs $1,700 to set up, brew, and bottle a batch of the beer. The annual cost to store the beer in inventory is $1.25 per bottl..

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