Problem
As a manager in charge of efficiency for the GBH company, explain the answer to the carrying cost situation below for the fiscal year from April 2016 through March 2017 and explain what you would do to reduce the carrying cost for the fecal year.
Product: Home Fans: yearly Carrying cost is 8%. The factory made 1000 fans and put them in stock on may 1, but because of regulations could not sell any. As efficiency manager you need to reduce your costs. Think about this carefully. Selling price was $79, manufacturing price was $49. Use your logic to calculate the YTD fecal carrying cost for this year and make your best effort to reduce the carrying going forward.