Inventory Management. XYZ Appliance Store sells an average of 160 units per month. Each order the store places is for 300 units. The cost per unit is $5. The cost per order is $12. Carrying cost is...

Inventory Management. XYZ Appliance Store sells an average of 160 units per month. Each order the store places is for 300 units. The cost per unit is $5. The cost per order is $12. Carrying cost is $0.15 per dollar invested per year. The rate of return is 18 percent. The tax rate is 46 percent.

(a) What is the investment in average inventory? (b) What is the annual ordering cost? (c) What is the annual holding cost? (d ) What is the opportunity cost of holding inventory? (e) What is the total cost of the inventory excluding the purchase price?