How much can average annual inventory be reduced

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DPZ company has an inventory of $ 200,000 and an average annual cost of Goods sold of $ 720,000. The president of the company believes that the annual inventory turnover ration can be increased to 8.0 if that happens , by now how much can average annual inventory be reduced, assuming everything else remains constatnt.

A) 110,000

B) 36,000

C) 90,000

Reference no: EM131176838

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