Business, 08.11.2019 18:31 kadence428
Amanufacturing company producing medical devices reported $60,000,000 in sales over the last year. at the end of the same year, the company had $20,000,000 worth of inventory of ready-to-ship devices. a. assuming that units in inventory are valued (based on cogs) at $1,000 per unit and are sold for $2,000 per unit, how fast does the company turn its inventory? b. the company uses a 25% per year cost of inventory. that is, for the hypothetical case that one unit of $1,000 would sit exactly one year in inventory, the company charges its operations division a $250 inventory cost. what – in absolute terms – is the per unit inventory cost for a product that costs $1,000?
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