Question: A distributor realizes that he has accumulated a substantial inventory (1575) of one of his items that is unlikely to be used up within a

A distributor realizes that he has accumulated a substantial inventory (1575)

A distributor realizes that he has accumulated a substantial inventory (1575) of one of his items that is unlikely to be used up within a reasonable time. The current demand is 350 units per year. The items were originally purchased for $2.10 per piece. The ordering cost had been $22. This distribution center uses an inventory carrying rate of 15%. He has assumed a potential salvage price and has decided to get rid of 850 of these items. Determine the assumed salvage price

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