Compute total and annual holding costs, Business Management

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Compute total and annual holding costs

Frederick's Farm Factory (FFF) presently marintains the average inventory valued at $3,400,000. Company evaluates its capital cost at 10 percent, its storage cost at 4.5 percent, and its risk cost at 10 percent.

(a) Compute annual holding cost rate for FFF

(b) Compute total annual holding costs for FFF

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Business Management: Compute total and annual holding costs

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Business Management: Compute total and annual holding costs

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