Question: 1 0 . 4 . A florist carries an average inventory of $ 1 2 , 0 0 0 in cut flowers. The flowers require

10.4. A florist carries an average inventory of $12,000 in cut flowers. The flowers require special storage and are highly perishable. The florist estimates capital costs at 10%, storage costs at 23%, and risk costs at 55%. What is the annual carrying cost?

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