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Calculate the number of liters currently in inventory

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Reference no: EM132100180

Air jet is going to increase amount of fuel inventory from 7 days in 2014 to 15 days in 2015. Assuming the costs stays at $.70 per liter, cost of capital is 8%, and storage is $250 per day for 1 million liters

How do I Calculate the number of liters currently in inventory Dec 31, 2014 and how many more liters are required to get to 15 days?

Is it simply 870,000/.70 ?= liters?

Additional info:

-inventory at year end = $870,000

-Corporate tax rate=25%

Reference no: EM132100180

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