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Assume both have an average annual holding rate cost of 3 0 % . How much lower ( on average ) is inventory cost at

Assume both have an average annual holding rate cost of

30 % .

How much lower

(

on average

)

is inventory cost at Costco as compared to Walmart of a product values at $

5

COGS? Assume that unit cost for the product is the same for both firms and that the price and turns are independent?

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