Bettamould Plc makes plastic tubes and parts used in plumb- ing in buildings. They had sales...
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Bettamould Plc makes plastic tubes and parts used in plumb- ing in buildings. They had sales of £120 million and a gross margin of 30 percent last year. a. How much inventory can they hold to maintain an inventory turnover ratio of 5.0 times? b. A new purchasing manager has suggested that they can reduce the amount of inventory by 25 percent by using a new software to automate their order ing. If they invest in the new software and reduce the inventory by 25 percent, how will it affect their inventory turnover ratio? Bettamould Plc makes plastic tubes and parts used in plumb- ing in buildings. They had sales of £120 million and a gross margin of 30 percent last year. a. How much inventory can they hold to maintain an inventory turnover ratio of 5.0 times? b. A new purchasing manager has suggested that they can reduce the amount of inventory by 25 percent by using a new software to automate their order ing. If they invest in the new software and reduce the inventory by 25 percent, how will it affect their inventory turnover ratio?
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a To calculate the maximum amount of inventory Bettamould Plc can hold to maintain an inventory turn... View the full answer
Related Book For
Financial Management Principles and Applications
ISBN: 978-0133423822
12th edition
Authors: Sheridan Titman, Arthur Keown, John Martin
Posted Date:
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