The annual sales and average stock

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Reference no: EM132247166

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?

Reference no: EM132247166

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