1.The following table shows financial data (year 2016) for two retailers, Dirt Cheap Wholesale and Kwiki-Mart. Assume that both retailers have an average annual holding cost rate of 20% (i.e. it costs each retailer $2 to hold an item that they procured for $10 for one entire year). Assume that both stores operate 365 days a year.

DIRT CHEAP WHOLESALE KWIKI-MART

Inventories ($MM) 4754 40894

Sales (net $MM) 59217 397206

COGS ($MM) 52762 326606

A) How many days, on average, does a product stay in Dirt Cheap's inventory before it is sold?

B) Both retailers carry a particular brand of a household cleaner, and each retailer incurs $5for acquiring one unit of the household cleaner from the supplier. How much lower (expressed in $'s) is, on average, the inventory holding costfor Dirt Cheap compared to Kwiki-Mart per unit of this household cleaner?