Compute its expected cost savings for the coming year

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Question - Pearl Company's budgeted sales and budgeted cost of goods sold for the coming year are $155,600,000 and $82,440,000, respectively. Short-term interest rates are expected to average 10%. If Pearl can increase inventory turnover from its present level of 8 times a year to a level of 10 times per year. Compute its expected cost savings for the coming year.

Reference no: EM132906282

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