The holding cost at a retailer is 35 percent per year. The retailer's annual inventory turns equal three. How much does it cost the retailer to hold a dress that is purchased for $50? O $22.27 O $8.75 O $5.83 O $17.50

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.6P
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The holding cost at a retailer is 35 percent per year. The retailer's annual inventory turns equal three.
How much does it cost the retailer to hold a dress that is purchased for $50?
O $22.27
O $8.75
$5.83
$17.50
Transcribed Image Text:The holding cost at a retailer is 35 percent per year. The retailer's annual inventory turns equal three. How much does it cost the retailer to hold a dress that is purchased for $50? O $22.27 O $8.75 $5.83 $17.50
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