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A company keeps 20 days of materials inventory on hand to avoid shutdowns due to materials shortages. Carrying costs average $4,000 per day. A competitor
A company keeps 20 days of materials inventory on hand to avoid shutdowns due to materials shortages. Carrying costs average $4,000 per day. A competitor keeps 10 days of inventory on hand, and the competitor's carrying costs average $2,000 per day. The value-added costs are: |
A. $80,000. B. $40,000. C. $20,000. D. $0.
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