What in absolute terms is the per unit inventory cost

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Inventory Cost:-

A manufacturing company producing medical devices reported $60,000,000 in sales over the last year. At the end of the same year, the company had $20,000,000 worth of inventory of ready-to-ship devices.

a. Assuming that units in inventory are valued (based on COGS) at $ 1 ,000 per unit and are sold for $2,000 per unit, how fast does the company tum its inventory? The company uses a 25 percent per year cost of inventory. That is, for the hypothetical case that one unit of $ 1 ,000 would sit exactly one year in inventory, the company charges its operations division a $250 inventory cost.

b. What-in absolute terms-is the per unit inventory cost for a product that costs $1,000?

Reference no: EM131255126

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