A computer company’s yearly inventory cost is 40 percent (which accounts for thecost of capital for financing the inventory, warehouse space, and the cost of obsolescence). Last year, the company had $400 million in inventory and cost of goods sold of$26 billion. What is the company’s total inventory cost for the year (in $ million)?

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
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Chapter2: Introduction To Spreadsheet Modeling
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A computer company’s yearly inventory cost is 40 percent (which accounts for the
cost of capital for financing the inventory, warehouse space, and the cost of obsolescence). Last year, the company had $400 million in inventory and cost of goods sold of
$26 billion. What is the company’s total inventory cost for the year (in $ million)?

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