An integrated circuit manufacturer’s annual cost of holdinginventory is 49%.(Round your answer to 2 decimal places.)Whatinventory holding cost (in $) do they incur for an item that costs$317 and has a two-months supply of inventory on average?peritem
Expert Answer
Given that, Annual cost of Holding = 49% = 0.49
Cost per item = $317
Duration of holding = 2 months
Holding cost per item = 317 x 0.49 x (2/12)
= $25.89