Reference no: EM132275047

1. A restaurant has annual sales of $417000, an average inventory of $8250, and an annual cost of goods sold of $273000.

(Round your answer to 2 decimal places.)

What is the restaurant’s monthly inventory turns?

2. Sarah’s Organic Soap Company makes organic liquid soap. One of the raw materials for her soaps is organic palm oil. She needs 1,000 kgs of palm oil per day on average. The supplier charges a $60 delivery fee per order (which is independent of the order size) and $4.75 per kg. Sarah’s annual holding cost is 25%. Assume she operates and sells 5 days per week, 52 weeks per year. a. If Sarah wants to minimize her annual ordering and inventory holding costs, how much palm oil should she purchase with each order (in kgs)? kgs b. If Sarah orders 4,000 kgs with each order, what would be the annual sum of ordering and holding costs? (Round your answer to 3 decimal places.) c. If Sarah orders 8,000 kgs with each order, what would be sum of ordering and holding costs per kg sold? per kg d. Sarah’s supplier is willing to sell her palm oil at a 5% discount if she purchases 15,000 kgs at a time. If she were to purchase 15,000 kgs per order what would be her annual sum of ordering and holding costs?