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Tech Company is a medium-sized consumer electronics retailer. The company reported $155,000,000 in revenues for 2007 and $110,050,000 in Costs of Goods Sold (COGS). In the same year, Tech Co. held an average of $11,050,000in inventory.
Inventory cost at Tech Co. is 22 percent per year. What is the per unit inventory cost ($) for an MP3 player sold at $40? Assume that the margin corresponds to the retailer’s average margin.
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