The following table shows financial data for Costco Wholesale and Walmart, two major U.S. retailers.

Assume that both companies have an average annual holding cost rate of 30 percent (i.e., it costs both retailers $3 to hold an item that they procured for $10 for 1 entire year).

a. How many days, on average, does a product stay in Costco’s inventory before it is sold? Assume that stores are operated 365 days a year.

b. How much lower is, on average, the inventory cost for Costco compared to Walmart of a household cleaner valued at $5 COGS? Assume that the unit cost of the household cleaner is the same for both companies and that the price and the inventory turns of an item are independent.

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Inventories Sales (net) COGS Costco ($ Millions) $ $ $ 3,643 48,106 41,651 Walmart ($ Millions) $ 29,447 $ 286,103 $215,493