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A building material business is operating in the north country. It has a 60,000 square feet...

A building material business is operating in the north country. It has a 60,000 square feet warehouse. If more storage space is required then the business uses public warehouse for rent. The monthly inventory turnover ratio for the business is 3. The warehouse has 50% of the floor area as aisles space and operates at 70% of capacity utilization factor due to seasonality in demand. Typical product density of building materials is: 0.5 cubic feet per pound, the materials are stored in 16 ft high stacks. The warehouse incurs fixed expenses of $0.375 per square feet per month and a variable expense of $0.05 per lb of throughput. The rental option costs $0.10 per lb of storage per month and an in-and-out handling cost of $0.07 per lb. Find the expenses of the warehouse for a monthly throughput of 2,395,000 lbs.

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