If a 200 unit of an item is required based on a 60% return rate, what change is made to the 200 if the return rate changes to 80%.

Question

A company carries an average monthly inventory of 200 special designed boxes ("shippers") at $40 each to meet the current monthly demand based on a 60% recycle/return rate of those shippers (200 x $40 = $8,000/month). If steps were taken that motivated or incented the recycle rate to increase to 80%, what change would that have on the 200 shippers? What is the formula to figure that out?

200 = .60

x = .80

?

Answer 1

200 at $40 equals 60% then goes to 240 at $40 equals 80%