Problem:
Tech Company is a medium-sized consumer electronics retailer. The company reported $155,000,000 in revenues for 2007 and the gross margin is 29%. In the same year, Tech Co. held an average of $20,000,000 in inventory. Inventory turns = 5.5
Inventory cost at Tech Co. is 35 percent per year.
Exercise:
Question: What is the per unit inventory cost for an MP3 player sold at $50? Explain in detail and provide calculations.