Epsom Co. manufactures furniture and sells about $40 million a year at a gross margins of 45%
accounting teacher (Not rated)
(Not rated)
Epsom Co. manufactures furniture and sells about $40 million a year at a gross margins of 45%
| |||||||
| a. What is the maximum inventory level the firm can carry to maintain an inventory turnover (based on COGS) of 8.0? | |||||||
| b. if the inventory contains $1.2 million of obsolete and damaged goods that don't turn over at all, how fast would the active inventory have to turn over to achieve an overall turnover rate of $8.00? | |||||||
11 years ago
Epsom Co. manufactures furniture and sells about $40 million a year at a gross margins of 45%
NOT RATED
Purchase the answer to view it
epsom_co.xls
