A company's holding cost is 18% per year. Its annual inventory turns are 8. The company buys an item for $50. What is the average cost in dollars (rounded to two decimal places) to hold each unit of this item in inventory?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 11P: Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35...
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Please provide correct answer this financial accounting question

A company's holding cost is 18% per year. Its
annual inventory turns are 8. The company
buys an item for $50.
What is the average cost in dollars (rounded
to two decimal places) to hold each unit of
this item in inventory?
Transcribed Image Text:A company's holding cost is 18% per year. Its annual inventory turns are 8. The company buys an item for $50. What is the average cost in dollars (rounded to two decimal places) to hold each unit of this item in inventory?
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