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A Firm with a Stockturn Rate of 5 Sells Products

Question 14

Multiple Choice

A firm with a stockturn rate of 5 sells products that cost it $100,000. Its annual inventory carrying cost is about 20 percent of the inventory value. What is its annual inventory carrying cost?


A) $5,000
B) $4,000
C) $8,000
D) $20,000
E) $100,000

Correct Answer:

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