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A study by a consultant shows that a company that had $1,000,000 of inventory was holding excess inventory of $100,000 that could be eliminated with
A study by a consultant shows that a company that had $1,000,000 of inventory was holding excess inventory of $100,000 that could be eliminated with a few process improvements. It also has $400,000 in marketable securities that yield 4% per year. What is the estimated annual opportunity cost of holding the excess inventory?
$4,000 | ||
$16,000 | ||
$20,000 | ||
$40,000 |
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