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?

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?

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