Albert Searchware is a type of search engine used at company websites to handle customer questions. The firm is trying to determ
1 answer:
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Answer:
d. Reduce average Inventory
Explanation:
Inventory turnover ratio represents how quickly an entity's inventory is converted into sales and cash is generated.
Inventory turnover in days is computed as;
=
Inventory turnover ratio can be computed as:
=
Average stock =
wherein, Op stock = Opening stock
Cost of Goods Sold = Sales - Gross Profit
A reduction in the average inventory level would increase the inventory turnover ratio, and thus reduce the inventory conversion period from 80 days to a lower level.
Answer: $425,000
Explanation: The total overhead cost can be computed suing following formula :-
total overhead cost = fixed overhead cost + variable overhead cost
where,
fixed overhead cost = $90,000
=$335,000
so,putting the values into equation we get :-
total overhead cost = $90,000 + $335,000
= $425,000