9.15If the annual cost of goods sold is $30,000,000 and the average inventory is $5,000,000:a. What is the inventory turns ratio?b. What would be the reduction in average inventory if, through better materialsmanagement, inventory turns were increased to 10 times per year?c. If the cost of carrying inventory is 25% of the average inventory, what is the annualsavings?

Given data: Annual cost of goods sold = $30,000,000 Average inventory = $5,000,000

Answered: 9.15 If the annual cost of goods sold…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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