Cyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales (at cost) of $56 million. During the year, the inventory of access turned over eight times. For the next year, Cyberphone plans to increase annual sales (at cost) by 31 percent. a. What is the increase in the average aggregate inventory value required if Cyberphone maintains the same inventory turnover during the next year? $. (Ent your response as an integer.) b. What change in inventory turns must Cyberphone achieve if, through better supply chain management, it wants to support next year's sales with no increase average aggregate inventory value? turns. (Enter your response rounded to one decimal place.)

Cyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales (at cost) of $56 million. During the year, the inventory of access turned over eight times. For the next year, Cyberphone plans to increase annual sales (at cost) by 31 percent. a. What is the increase in the average aggregate inventory value required if Cyberphone maintains the same inventory turnover during the next year? $. (Ent your response as an integer.) b. What change in inventory turns must Cyberphone achieve if, through better supply chain management, it wants to support next year's sales with no increase average aggregate inventory value? turns. (Enter your response rounded to one decimal place.)

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

Please show solutions. Thank you!
Navajo Company's year-end financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Year 1 ending inventory is understated by $69,000 and Year 2 ending inventory is overstated by $39,000. For Year Ended December 31 (a) Cost of goods sold (b) Net income (c) Total current assets (d) Total equity Year 1 $ 744,000 Year 2 $ 974,000 287,000 1,266,000 1,406,000 294,000 1,379,000 1,599,000 Year 3 $ 809,000 269,000 1,249,000 1,264,000 Required: 1. For each key financial statement figure-(a), (b), (c), and (d) above-prepare a table to show the adjustments necessary to correct the reported amounts. 2. What is the total error in combined net income for the three-year period resulting from the inventory errors? Complete this question by entering your answers in the tabs below. Required 1 Required 2 For each key financial statement figure-(a), (b), (c), and (d) above-prepare a table to show the adjustments…
I need typing no chatgpt used
Muscle Bound is a chain of fitness stores located in many largeshopping centers. Recently, an internal memo from the CEOto all operations personnel complained about the budget over-runs at Muscle Bound’s central warehouse. In particular, shesaid that inventories were too high and that the budget will becut dramatically and proportionately equal for all items in stock.Consequently, warehouse management set up a pilot study tosee what effect the budget cuts would have on customer service.They chose 5-pound barbells, which are a high volume SKU andconsume considerable warehouse space. Daily demand for thebarbells is 1,000 units, with a standard deviation of 150 units.Ordering costs are $40 per order. Holding costs are $2/unit/year.The supplier is located in the Philippines; consequently, thelead time is 35 days with a standard deviation of 5 days. MuscleBound stores operate 313 days a year (no Sundays).Suppose that the barbells are allocated a budget of $16,000 fortotal annual costs. If…
As an operations management consultant, you have been asked to evaluate a furniture manufacturer’s cash-to-cash conversion cycle under the following assumptions: sales of $26.4 million, cost of goods sold of $21.1 million, 50 operating weeks a year, total average on hand inventory of $2,350,000, accounts receivable equal to $2,435,000, and accounts payable of $3,695,000. What is the cash-to-cash conversion cycle in weeks? Do not round intermediate calculations. Round your answer to one decimal place. week(s) What recommendations can you make to improve performance? inventory weeks of supply and accounts receivable weeks of supply or accounts payable weeks of supply are ways to improve overall firm performance.
ABC Company placed an order on December 1. It normally receives the order after 9 days. If the company has a normal usage of 10 units per day. What is the re-order point?
Explain why is necessary to maintain inventory control?
Which product represent cash caw, question mark, dog and star in mtn products
Toys "R" Us had cost of goods sold of $12,355 million, ending inventory of $3,187 million, and average inventory of $2,343 million. Its days' sales in inventory equals:
Inventory turns ProofSmart Inc., a supplier of home insulation materials, was burned down in a recent fire. From the remains of what used to be the accounting ledger, the following information was recovered: Inventory Gross Margin Inventory Turns Multiple Choice 2011 $2,367321 16% 13 Prior to the fire, ProofSmart saw a sales growth of 15% in 2012, a record performance for the 18 year-old company. What was the sales for 2012? NOTE: Gross margin is defined as 1-(COGS /Sales). 30772573 36492036 67369882 2012 $2,418,257 45% (unreadable) 42106226
K Jenna Baker, CEO of Baker Mfg Inc., wishes to compare her company's inventory turnover to those of industry leaders, who have turnover of about 13 times per year and 8% of their assets invested in inventory. Baker Mfg. Inc. Net Revenue $27,500 $21,840 $1,240 $16,700 Cost of sales Inventory Total assets a) What is Baker's inventory turnover? ☐ times per year (round your response to two decimal places).
With the attached as reference, how can you justify the use of RFID to manage inventory?