: Assume Dell's annual inventory holding cost is 40% to account for the cost of capital for financing the inventory, the warehouse space, and the cost of obsolescence. In 2001, Dell's 10-K reports showed that the company had $400 million in inventory and COGS of $26,442 million.

a. What is the per-unit inventory cost of Dell?

b. What Dell has to pay for holding a laptop that is worth $1000 in cost value?