Assume that both companies have an average annual holding cost rate of 20% (i.e. it costs both retailers $2 to hold an item for one entire year that they procured for $10).

Save-A-Lot Wally's Mart

Inventories ($MM) 5,743 40,694

Sales (net) ($MM) 59,217 397,206

COGS ($MM) 53,962 316,606

How much lower, on average, is the inventory cost for Save-A-Lot compared to Wally's Mart of a household cleaner valued at $50 COGS? Give your answer in terms of dollars. Assume that the unit cost of the household cleaner is the same for both companies and that the price and the inventory turns of an item are independent.