Baryla inc manufactures high quality decorator lamps

Reference no: EM13839103

Baryla Inc manufactures high quality decorator lamps in a plant located in Eastern Tennessee. Last year the firm had sales of $100 million and a gross profit margin of 40%. How much inventory can Baryla hold and still maintain an inventory turnover ratio of at least 6.0 times. Currently some of Baryla's inventory includes $2 million of outdated and damaged goods that simply remain in inventory and are not salable. What inventory turnover ratio must the good inventory have to maintain in order to achieve an overall turnover ratio of at least 6.0( including the unsalable item)

Reference no: EM13839103

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