ZuoTi.Pro
Question

A company buys an item for €50 and sells it for €75. The annual sales and...

A company buys an item for €50 and sells it for €75.

The annual sales and average stock of this item is 10000 units and 1600 units, respectively; while
the carrying cost is 20 percent of its acquisition cost. Calculate:

a) inventory turnover

b) weeks of supply

c) annual gross profit

d) average investment in stock

e) annual inventory carrying cost

f) Would the company operate more efficiently, if average stock is

reduced to 1000 units?

business   Operations-Management   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)

All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
A company buys an item for €50 and sells it for €75. The annual sales and...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • RajDee Furniture Company (RFC) buys and sells office furniture. The company buys chairs from a manufacturer...

    RajDee Furniture Company (RFC) buys and sells office furniture. The company buys chairs from a manufacturer for $40 per unit. Order costs are $200 per order and there is a lead time of 10 days for each order to arrive from the manufacturer to RFC warehouse. Inventory carrying cost for RFC is 10%. Average yearly demand for the chairs is 40,000 units. Answer the following questions, assuming there is no uncertainty at all about the demand or the lead time....

  • Best Bikes produces bicycles and buys brakes from a supplier in Japan. The brake set for...

    Best Bikes produces bicycles and buys brakes from a supplier in Japan. The brake set for one bicycle costs $125, and it is $35 to process the order with the supplier. The company consistently sells 50 bicycles a week (for 52 weeks of the year) and holds an average of 1 week of brake sets in inventory to cover the constant lead time from Japan. The company uses a holding/carrying rate of 25%. 1. What is the average inventory carrying/holding...

  • A company decides to establish an EOQ for an item. The annual demand is 400,000 units,...

    A company decides to establish an EOQ for an item. The annual demand is 400,000 units, each costing $8, ordering costs are $32 per order, and inventory-carrying costs are 20%. Calculate the following: a. The EOQ in units b. Number of orders per year c. Cost of ordering d. Cost of carrying inventory e. Total Cost

  • A company decides to establish an EOQ for an item. The annual demand is 25,000 units,...

    A company decides to establish an EOQ for an item. The annual demand is 25,000 units, each unit costing $10, ordering cost is $40 per order, and inventory-carrying cost rate is 20%. Annual carrying cost is: Select one: O A. $2000 B. $1548 OC. $1342 O D. $948 O E. None of thenm

  • Michigan State Figurine Inc. (MSF) sells crystal figurines to Spartan fans. MSF buys the figurines from...

    Michigan State Figurine Inc. (MSF) sells crystal figurines to Spartan fans. MSF buys the figurines from a manufacturer for $32 per unit. They send orders electronically to the manufacturer, costing $57 per order and they experience an average lead time of seven days for each order to arrive from the manufacturer. Their inventory carrying cost is 20 percent. The average daily demand for the figurines is three units per day. They are open for business 250 days a year. Answer...

  • 12. Big Chief Tablet Company expects annual sales of 600,000 electronic tablets, an order cost of...

    12. Big Chief Tablet Company expects annual sales of 600,000 electronic tablets, an order cost of $12 per order and a carrying cost of $1.50 per tablet What is the economic order quantity? a. b. How many orders will be placed during the year? What will the average inventory level be? c. d. What is the annual total cost of ordering and carrying inventory? e Assume an additional 5,000 units of inventory will be required as safety stock What will...

  • Ergonomics Inc. sells ergonomically designed office chairs. The company has the following information: Average demand =...

    Ergonomics Inc. sells ergonomically designed office chairs. The company has the following information: Average demand = 28 units per day Average lead time = 43 days Item unit cost = $63 for orders of less than 330 units Item unit cost = $62 for orders of 330 units or more Ordering cost = $38 Inventory carrying cost = 20% The business year is 250 days Assume there is no uncertainty at all about the demand or the lead time. a....

  • A company makes and sells a seasonal products . based on a sales forecast of 2000,...

    A company makes and sells a seasonal products . based on a sales forecast of 2000, 3000, and 5000 per quarter , calculate a level production plan , quarterly ending inventory , and average quarterly inventory . if inventory carrying cost are 3 $ per unit per quarter , what is the annual cost of carrying inventory ? opening and ending inventories are zero . answer by a typing please

  • The annual demand for an item is 10,000 units. The cost to process an order is $75 and the annual inventory holding cost...

    The annual demand for an item is 10,000 units. The cost to process an order is $75 and the annual inventory holding cost is 20% of item cost. 1. What is the optimal order quantity, given the following price breaks for purchasing the item? 2. What price should the firm pay per unit? 3. What is the total annual cost at the optimal behavior? Quantity Price 1-9 $2.95 per unit 10 - 999 $2.50 per unit 1,000 - 4,999 $2.30...

  • Casper Inc. buys and sells a household cleaning item for the last 8 years at their...

    Casper Inc. buys and sells a household cleaning item for the last 8 years at their New Jersey outlet. The following information is for Casper Inc. for the month ended June 30 2018. Casper Inc. uses the periodic method for inventory. Date Description Quantity Unit Cost or Selling Price June 1 Opening Inventory 80 80 June 3 Purchase 270 86 June 5 Sale 220 140 June 9 Sale 15 25 June 11 Sales Return 30 140 June 13 Purchase 110...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT