Retail Op

The most suitable costing method Yeltin should adopt is the practical capacity in order to remove the factor of uncertain budgeted sales figure. For this approach and the practical capacity of 65000-22000 units, then the revised overhead costs come out to be $30. With the inclusion of material and labor costs, the cost of the cartridge stand at $52 and the additional royalty expense of $10 raises the overall per unit cost to $62. The selling price of the cartridge is fixed at $150. With this selling price, the gross margin is equal to $88. The gross margin percentage is equal to 59%. In comparison to the budgeted volume, the gross margin has increased by 14%. See below

Consider a product line with 50% gross margins (after subtracting volume-related expenses from prices). The cost for handling an individual customer order is SEK 750, and the extra cost to handle a production order for a non-stocked item is SEK 2,250.

Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost

|Inventory turnover |180,000/5000 |36 |N/A |Inventory turnover is calculated to determine how quickly the inventory is used based on the services rendered.|

PART A: Cost of goods sold = = = = PART B: Net Profit = Gross Profit – Operating Expenses Cost of merchandise available for sale – cost value of ending inventory ($260,000 + $500,000) - $275,000 $760,000 - $275,000 $485,000

If the $17,000 spent to purchase inventory could be invested and earn interest of $1,000, then the opportunity cost of holding inventory is $17,000.

2. Assume that there is no January 1, 20X7, inventory; no variances are allocated to inventory; and the firm uses a “full absorption” approach to product costing. Compute:

What is RetailMax? RetailMax, Inc. is a young Boston- based company that provides merchandise, optimization software, and assistance with tasks such as; preseason planning inventory management, product pricing, and forecasting customer demands to major retailers. RetailMax was founded in 1984 as a consulting company and transitioned to a software company in 1998. Like many other software companies, RetailMax was forced to downsize in areas that were not directly involved with

Nordstrom’s inventory turnover, which in this case measures how quickly the company goes through their inventory in any given year. For Nordstrom, a starting inventory turnover of 5.41 in 2009 from 4.84 in 2005 was considered a five-year high. It was night and day to them as the health of their business turned faster versus it turning slower. The changes that were upon Nordstrom during these years gave them a very high competitive advantage in the fashion industry.

Blue Nile’s business model is to offer high-quality diamonds and fine jewelry at competitive and attractive prices. Blue Nile strives to provide customers with useful information throughout the buying process, including educational information such as grading reports on the diamonds.

With this company the inventory management ratios further indicate that there may be an issue with inventory and inventory controls. The inventory turnover ratio is lower than the industry average and the days’ sales in inventory are high. A company wants to turn inventory quickly to reduce storage costs, and

Suppose its inventory holding cost per unit per year doubles while the annual demand and the

Once they have their inventory under control, the purchasing department should complete a very detailed cost analysis to determine the total inventory cost, including all aspects and hidden fees. Once they have the

Inventory turnover for Company A (3.08x) is higher than Company B (0.93x), that means inventories are sold and replaced faster than Company B. Company A has higher turnover because those institutions, especially hospitals “consume” health products faster and more. Lastly its show Company A has deep pipeline of its ethical pharmaceuticals.

Consider a product line with 50% gross margins (after subtracting volume-related expenses from prices). The cost for handling an individual customer order is SEK 750, and the extra cost to handle a production order for a non-stocked item is SEK 2,250.