What is average value of inventory for the a and b products

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Reference no: EM133420131

Questions: A company sells 1,000 different products for which the total annual sales are estimated to be $200 million. The best-selling products are classified as A products and this includes 5% of the total products, and accounts for 60% of total sales. The next best-selling products are classified B products and this includes 25% of the total products, and accounts for 25% of total sales. The turnover ratio is 10 to 1 for the A products and 5 to 1 for the B products.

a) What is the average value of inventory for the A and B products together?

b) How many days does each A product spend in inventory on average?

c) What turnover ratio for the C products is needed to make the average value of inventory for C products together (A, B and C) equal to $9 million? Show all your work.

Reference no: EM133420131

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