Inventory cost at Tech Co. is 35 percent per year. What is the per unit inventory cost for an MP3 player sold at $50? Assume that the margin corresponds to the retailer's average margin.

17.5

To calculate the per unit inventory cost for an MP3 player, we need to find the cost of holding inventory as a percentage of the product's price.

First, we need to determine the cost of holding inventory as a percentage of the product's price. The inventory cost at Tech Co. is 35 percent per year. This means that for every $100 worth of inventory, Tech Co. incurs an additional cost of $35.

To find the total inventory cost for the MP3 player, we need to calculate 35 percent of its selling price of $50.

Inventory cost = 35% * $50
= (35/100) * $50
= $17.50

Therefore, the per unit inventory cost for the MP3 player is $17.50.

To calculate the per unit inventory cost for an MP3 player sold at $50, we need to multiply the cost percentage by the selling price.

First, let's calculate the cost percentage by subtracting the margin from 100%:

Cost percentage = 100% - Margin

Since the margin corresponds to the retailer's average margin, we do not have the exact value. Let's assume a margin of 20% for this example:

Cost percentage = 100% - 20% = 80%

Next, we calculate the inventory cost by multiplying the cost percentage by the selling price:

Inventory cost = Cost percentage * Selling price

Inventory cost = 80% * $50

Inventory cost = 0.8 * $50

Inventory cost = $40

Therefore, the per unit inventory cost for an MP3 player sold at $50 is $40.