Multiple Choice
Your company keeps 15 days of materials inventory on hand to avoid shutdowns due to materials shortages. Carrying costs average $5,000 per day. A competitor keeps 12 days of inventory on hand, and the competitor's carrying costs average $3,000 per day. The value-added costs are
A) $0.
B) $5,000.
C) $30,000.
D) $75,000.
Correct Answer:
Verified
Correct Answer:
Verified
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