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Victor sells a line of upscale evening dresses in his boutique. He charges $300 per dress, and sales average 30 dresses per week. Currently, Victor orders a 10-week supply at one time from the manufacturer. He pays $150 per dress, and it takes 2 weeks to receive each delivery. Victor estimates his administrative cost of placing each order at $225. Because he estimates his cost of capital at 20%, each dollar's worth of idle inventory costs him $0.20 per year. Victor's boutique sells 52 weeks in a year. Q1. Compute Victor's total annual cost of purchasing, ordering and carrying

User Giovannia
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Victor sells a line of upscale evening dresses in his boutique. He charges $300 per-example-1
User Davidbrcz
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