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A firm with sales of $500,000 has average inventory of $200,000. the industry average for inventory turnover is four time a year. what would be the reduction in inventory if this firm were to achieve a turnover comparable to the industry average?

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A firm with sales of $500,000 has average inventory of $200,000. the industry average for inventory turnover is four time a year. what would be the reduction in inventory if this firm were to achieve a turnover comparable to the industry average?

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Step 1

Inventory turnover measures how many times, on average company sells its entire inventory during the year. A high inventory turnover ratio is a positive sign. It indica...

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