Question: In a warehouse there are multiple factors that will affect the inventory cost. In our case assume that the yearly cost of capital is 1

In a warehouse there are multiple factors that will affect the inventory cost. In our case assume that the yearly cost of capital is 10%, the damage cost is 6%, and the insurance cost is 5%, and finally Tax cost is assumed to be 4% of the price of the product. For a product of $1,200 how much will be the inventory holding cost per item, if kept in the retail store for one year?
a.
$700
b.
$300
c.
$500
d.
$200

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