Question: Baktoo Basics Ltd. is considering introducing an inventory control system that will increase inventory turnover from 10 to 15 times per year. Its annual cost

Baktoo Basics Ltd. is considering introducing an inventory control system that will increase inventory turnover from 10 to 15 times per year. Its annual cost of goods sold is expected to be $6 million, and its financing costs are at 11 percent. Should Baktoo Basics consider an expenditure of $17,500 on the new control system?

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