Using the information below, compute the cash conversion cycle Days sales in accounts receivable 54 days Days sales in inventory 71 days Days payable outstanding 64 days Multiple Choice 31 days 144 days 61 days 85 days 89 days Division P of Launch Corporation has the capacity for making 78,500 wheel sets per year and regularly sells 63,500 each year on the outside market The regular sales price is $135 per wheel set, and the variable production cost per unit is $93 Division Q of Launch Corporation currently buys 33,500 wheel sets (of the kind made by Division P) yearly from an outside supplier at a price of $125 per wheel set If Division Q were to buy the 33,500 wheel sets it needs annually from Division P at $115 per wheel set, the change in annual net operating income for the company as a whole, compared to what it is currently, would be Multiple Choice $635,000 $295,000 $1,072,000 $142,000 $785,000

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Question: Using the information below, compute the cash conversion cycle: Days sales in accounts receivable 54 days Days sales in inventory 71 days Days payable outstanding

Using the information below, compute the cash conversion cycle:


Days sales in accounts receivable	54	days
Days sales in inventory	71	days
Days payable outstanding	64	days

Multiple Choice

31 days.
144 days.
61 days.
85 days.
89 days.

Division P of Launch Corporation has the capacity for making 78,500 wheel sets per year and regularly sells 63,500 each year on the outside market. The regular sales price is $135 per wheel set, and the variable production cost per unit is $93. Division Q of Launch Corporation currently buys 33,500 wheel sets (of the kind made by Division P) yearly from an outside supplier at a price of $125 per wheel set. If Division Q were to buy the 33,500 wheel sets it needs annually from Division P at $115 per wheel set, the change in annual net operating income for the company as a whole, compared to what it is currently, would be:

Multiple Choice
$635,000
$295,000
$1,072,000
$142,000
$785,000

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