Question: Baktoo Basics Ltd. is considering introducing an inventory control system that will increase inventory turnover from 12 to 16 times per year. Its annual cost

Baktoo Basics Ltd. is considering introducing an inventory control system that will increase inventory turnover from 12 to 16 times per year. Its annual cost of goods sold is expected to be $75 million and its financing costs are at 15 percent. Should Baktoo Basics consider an expenditure of $25,000 on the new control system? NO Yes

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