Turnover analySIS Sales Costs Average Inventory a. $500,000 $300,000 $200,000 300,000150,000 300,000100,000 300,000 75,000 60,000 50,000 500,000 500,000 500,000 500,000 500,000 10% capital cost, therefore, $200,000 average inventory costs $20,000 Turnover Rate 1.5 2.0 3.0 4.0 5.0 6.0 b. 300,000 300,000 Calculate the cost of capital for b-f above at the given 10% 150,000 100,000 75,000 60,000 50,000