Your company keeps 15 days of materials inventory on hand to avoid shutdowns due to materials shortages. Carrying costs average $5,000 per day. A competitor keeps 12 days of inventory on hand, and the competitor's carrying costs average $3,000 per day. The non-value-added costs would be
A) $-0-.
B) $75,000.
C) $30,000.
D) $80,000.

Question

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The Answer of Your company keeps 15 days of materials inventory on hand to avoid shutdowns due to materials shortages. Carrying costs average $5,000 per day. A competitor keeps 12 days of inventory on hand, and the competitor's carrying costs average $3,000 per day. The non-value-added costs would be
A) $-0-.
B) $75,000.
C) $30,000.
D) $80,000.

Your Company Keeps 15 Days of Materials Inventory on Hand