The following information refers to three.uestions ABC Company plans to construct a 60,000 sq ft of private warehouse and rent public warehouse as needed Warehouse inventory bums at the rate of two times per month. One pound of merchandise occupies 0:2 cubic feet of warehouse space and can be stacked 10 ft. high Given aisles administrative space, and normal operating efficiency, only 50 percent of the total warehouse space is actually used for storage. A private warehouse can be constructed and equipped for $36 per sq ft and can be amortized over 20 years. The cost of operation is 50.03 per lb of throughput. Annual fixed costs amount to 520 per sq ft, of total space Space may also be rented for a storage charge on inventory of $0.06 per tb per month and a handling charge of $0.03 per lb of throughout Monthly demands for a typical year are as follows Month Demand (b) Month Demand (b) Jan 1,000,000 1,250,000 Feb. 5,000,000 Aug 2.250.000 Mar 3.000.000 Sept 3,000,000 Apr 2,000,000 Oct. 3,500,000 May 1,000,000 Nov 4,000,000 June 250.000 Dec 4,500,000 Q: After some algebra, ABC finds out that Fel needs a total of 100,000 sq. ft. storage space Therefore, ABC needs to rent some storage space from a public warehouse. How much does ABC pay for the public warehouse in Feb 0 $60,000 O $100,000 O $120000 O $160000 O None of above Q: After some algebra, ABC finds out that March needs a total of 60,000 sq. ft. storage space. Therefore, ABC will fully utilize its own private warehouse and will not need to rent any space from a public warehouse. In March, what's ABC's total monthly cost which includes amortized fixed cost and variable cost? O $60,000 O $109,000 O $120,000 O $199.000 O None of above