1. Suppose the shipping cost in a 20' container from Madrid, Spain to Los Angeles is approximately $2,350. The average shipment value of cargo in a 20' container is $51,100. The annual inventory carrying cost is 20%. It takes approximately 20 days from Madrid, Spain to Los Angeles.What is the in-transit inventory carrying cost per container during the shipping period (20 days)?

Hint: Find the carrying cost per day and then multiply 20 days (shipping duration).

a. 460

b. 500

c. 600

d. 560

1.a Suppose the shipping cost in a 20' container from Madrid, Spain to Los Angeles is approximately $2,350. The average shipment value of cargo in a 20' container is $51,100. The annual inventory carrying cost is 20%. It takes approximately 20 days from Madrid, Spain to Los Angeles.

If the company ships 40 containers every month, what is the total monthly carrying cost;