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Cyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales (at cost) of $48 million. During the year, the inventory of accessories turned over six times. For the next year, Cyberphone plans to increase annual sales (at cost) by 25 percent.
-What is the increase in the average aggregate inventory value required if Cyberphone maintains the same inventory turnover during the next year?
-What change in inventory turns must Cyberphone achieve if, through better supply chain management, it wants to support next year's sales with no increase in the average aggregate inventory value?
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