Course Solutions Uncategorized Integrated Circuit Manufacturer S Annual Cost Holding Inventory 49 Round Answer 2 Decimal Q34321744

Integrated Circuit Manufacturer S Annual Cost Holding Inventory 49 Round Answer 2 Decimal Q34321744

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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

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Integrated Circuit Manufacturer S Annual Cost Holding Inventory 49 Round Answer 2 Decimal Q34321744

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

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