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marshall27 [118]
3 years ago
9

Pedee Company's inventory turnover in days is 80 days. Which of the following actions could help to improve that ratio? a.Increa

se the sales price. b.Increase manufacturing costs. c.Reduce the cost of goods sold. d.Reduce average inventory. e.All of these.
Business
1 answer:
snow_lady [41]3 years ago
7 0

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;

= \frac{365\ days}{Inventory\ Turnover\ ratio}

Inventory turnover ratio can be computed as:

= \frac{Cost\ of\ goods\ sold}{Average\ Stock}

Average stock = \frac{Op\ stock\ +\ Closing\ Stock}{2}

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.

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7 0
1 year ago
Define the terms:
navik [9.2K]

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5 0
3 years ago
When was the word integer introduced?
svet-max [94.6K]
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8 0
3 years ago
Ahmad bought a desktop computer and a laptop computer. Before finance charges, the laptop cost less than the desktop. He paid fo
deff fn [24]

Answer:

cost of laptop = $1,800

cost of desktop = $2,100

Explanation:

From the question above, we can see that the laptop costs $300 less than the desktop, therefore, we say:

let x represent the cost of the laptop ;

then x+300 will be the cost of the desktop .

We can also see that the total finance charge of $252 is equal to 7% of the cost of the laptop and 6% of the cost of the desktop, we solve as follows:

252 = 0.07(x) + 0.06(x + 300)

252 = 0.07x + 0.06x + 18

252 - 18 = 0.13x

234 = 0.13x

x = 234/0.13

x = 1,800

Recall that:

cost of desktop = x + 300

therefore:

1,800 + 300 = 2,100.

cost of laptop = $1,800

cost of desktop = $2,100

6 0
3 years ago
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The scenario below should be used for the following two questions. Your company, Johnson Farm Products, has decided to expand it
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Answer:

Education and communication

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Second, communication can help portray the need for change by packaging it properly.

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