A company buys an item for $50 and sells it for $75. The annual sales and average

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A company buys an item for $50 and sells it for $75. The annual sales and average stock of this item is 10000 units and 1600 units, respectively; while the carrying cost is 20 percent of its acquisition cost.

Calculate:

a) inventory turnover

b) weeks of supply

c) annual gross profit

d) average investment in stock

e) annual inventory carrying cost

f,Would the company operate more efficiently, if average stock is reduced to 1000 units?

Related Book For answer-question

College Algebra Graphs and Models

ISBN: 978-0321845405

5th edition

Authors: Marvin L. Bittinger, Judith A. Beecher, David J. Ellenbogen, Judith A. Penna

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Posted Date: Aug 05, 2020 02:44 AM

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A company buys an item for $50 and sells it for $75. The annual sales and average

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ANSWER A Inventory turnover total sales avg inventory Sales 10000 and avg inventory 1600 Inventory t... View the full answer

College Algebra Graphs and Models

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