Reference no: EM133186294
Questions -
Q1. ABC Company has an inventory order quantity of 10,000 units and a safety stock of 2,000 units. The cost per unit of inventory is P5, and the carrying cost is 10% of the average value of inventory. The annual inventory carrying cost for the company is?
Q2. What is the economic order quantity for the following inventory policy: A firm sells 32,000 bags of premium sugar per year. The cost per order is P200 and the firm experiences a carrying cost of P0.80 per bag.
Q3. ABC Company has total assets turnover ratio of 1.90 and a return on total assets of 7.20%. What is the firm's net profit margin?
Q4. Selected information from the accounting records of RCR Manufacturing Company follows:
Net sales P3,600,000
Cost of goods sold P2,400,000
Inventories at January 1 P672,000
Inventories at December 31 P 576,000
What is the number of days' sales in average inventories for the year?