8. Calculate the inventory carrying cost percentage for XYZ Company, given the following information:

• Finished goods inventory is $26 million, valued at full manufactured cost.

• Based on the inventory plan, the weighted-average variable manufactured cost per case is 70 percent of the full manufactured cost.

• The transportation cost incurred by moving the inventory to field warehouse locations was $1.5 million.

• The variable handling cost of moving this inventory into warehouse locations was calculated to be $300,000.

• The company is currently experiencing capital rationing, and new investments are required to earn 15 percent after taxes.

• Personal property tax paid on inventory was approximately $200,000.

• Insurance to protect against loss of finished goods inventory was $50,000.

• Storage charges at public warehouses totaled $450,000.

• Variable plant storage was negligible.

• Obsolescence was $90,000.

• Shrinkage was $100,000.

• Damage related to finished goods inventory levels was $10,000.

• Transportation costs associated with the relocation of field inventory to avoid obsolescence was $50,000.