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BIT Electronics is a manufacturer of computer components. Last year, BIT had average inventories as described in the following table: # of units unit cost ($) raw material 1 29,500 18.50 raw material 2 37,500 13.20 raw material 3 1,250,300 11.65 work-in-process 1 4,850 56.75 work-in-process 2,950 62.25 work-in-process 3 6,120 100.85 work-in-process 4 5,690 84.30 finished goods 92,850 315.00 The company operates 50 weeks/year, with annual sales of $322.85 million. (a) What was their average aggregate inventory value? (b) What was their average inventory (measured in weeks of supply)? (c) What was their inventory turnover? BIT operates on a build-to-stock policy, and therefore stores its finished goods in a warehouse capable of housing up to 70,000 units. Its annual over- head cost (fixed cost) is $117,000; and it costs $3/unit to house the finished goods. BIT has been approached by a warehouse company offering to house the finished goods for a unit cost of $4.5/unit, with an annual contract cost of $30,000. (d) Should BIT continue operating its own warehouse, or should it employ the warehouse company? Why