What is the firm net profit margin

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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?

Reference no: EM133186294

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