One of the reasons many companies may not want to produce more than they can sell and hold the excess inventory in a warehouse is because the technology might become obsolete. Another reason is that there are costs associated with holding inventory. The following company XYZ held $1.675 million in inventory for one year in its warehouse in Japan and it cost the company approximately

a. $100,000

b. $555,875

c. $175,500

d. $385,250

e. None of the above