Question

From a marginal analysis perspective, what is the inventory carry cost for Andrews if the company...

From a marginal analysis perspective, what is the inventory carry cost for Andrews if the company carries one additional unit of Agape in inventory at the end?

$1.63

$6.34

$3.17

$13.57

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Answer #1

Answer :

Inventory carry cost is the total holding cost for holding an inventory and it includes cost of capital, warehousing, depreciation, insurance, taxation, obsolescence, opportunity cost etc.,. Also called inventory cost.

Inventory carry cost for Andrews is $6.34.
Hence, option B is correct.

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