Using the following information, calculate the inventory carrying cost percentage.

• Finished goods inventory is $22 million at full manufactured cost.
• Variable manufactured cost of inventory is 85% of full manufactured cost.
• Variable transportation cost was $1.85 million.
• Insurance coverage to protect against warehouse facility loss $125,000.
• Personal property taxes paid on inventory were approximately $200,000.
• Variable storage charges at private warehouses totaled $350,000.
• Obsolescence was $92,000.
• Theft of inventory was $85,000.
• Damage related to inventory storage was $45,000.
• The company was experiencing capital rationing and required that new investments earn at least 7% before taxes. (This is your cost of money.)
• Transportation cost of cross-shipping inventory to avoid obsolescence was $35,000.
• Rental costs for warehouse equipment $150,000