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10 January, 20:24

The musical instrument store estimates costs of $18,750.00 annually to carry inventory of musical instruments and accessories. the costs include 12% for storage, 12% for interest, and 5% for transportation. what is the value of the inventory to the nearest cent?

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  1. 10 January, 22:52
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    To find the value of the inventory to the nearest cent:

    Estimated costs are: $18,750

    Storage costs: 12%

    Interest costs: 12%

    Transportation costs: 5%

    Let's add the costs up: 12% + 12% + 5% = 29%

    We are solving for the value of inventory so in this case we will make that X.

    X = estimated costs/interest amounts

    X = $18,750/29%

    X = $18,750/0.29

    X = $64,655.17

    The value of the inventory is $64,655.17

    To check your work you can take $64,655.17 and multiply it by 29%

    = $18,750
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