[emar1070]

two retailers have the following figures:


A B
Inventories ($MM) 5,743 40,694
Sales(net$MM) 59,217 397,206
COGS($MM) 53,962 316,606
both retailers have a annual holding cost of 20 %

for an item like for example a vacuum cleaner vaLue at 50 us $ COGS:how much lower on the average,is the inventory cost for the retailer A than for retailer B,for that item valued at 50 COGS?let us assume that unit cost of that item is the same
for both retailers,the ^price and the inventory are independent.


regards

m reick