Inventory carrying costs SMY Corporation produces $60,000$ videophones per year. The com$-$

pany estimates its direct material costs for the videophone to be $$300$ per unit and its conversion

$($direct labor plus support$)$ costs to be $$400$ per unit. Annual inventory carrying costs, not included

in these costs, are estimated to be $10\%.$

SMY$\text{'}$s average inventory levels are estimated as follows:

Compute the annual inventory carrving costs for SMY Cornoration.