The required average aggregate inventory value, if the company is maintaining the same inventory turnover for the next year is to be determined. Concept Introduction: The Company has ended the year with an annual sale of $48 million. In that year, the company has experienced a six times increase in its inventory of accessories. Now, for the next year, the company is planning to raise its annual sales by 25%.

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Answer 1

Question

Chapter 12, Problem 2P

A

Summary Introduction

Interpretation: The required average aggregate inventory value, if the company is maintaining the same inventory turnover for the next year is to be determined.

Concept Introduction: The Company has ended the year with an annual sale of $48 million. In that year, the company has experienced a six times increase in its inventory of accessories. Now, for the next year, the company is planning to raise its annual sales by 25%.

B

Summary Introduction

Interpretation: Changes in inventory turns are to be discussed that should be adapted by Cyberphone to support next year’s sales with no increase in the average aggregate inventory value through better supply chain management.

Concept Introduction: The Company has ended the year with an annual sale of $48 million. In that year, the company has experienced a six times increase in its inventory of accessories. Now, for the next year, the company is planning to raise its annual sales by 25%.

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Cyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales (at cost) of $42 million. During the year, the inventory of accessories turned over six times. For the next year, Cyberphone plans to increase annual sales (at cost) by 25 percent. a. What is the increase in the average aggregate inventory value required if Cyberphone maintains the same inventory turnover during the next year? $1,750,000. (Enter 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 in the average aggregate inventory value? O turns. (Enter your response rounded to one decimal place.)

Answer 2

Question

Chapter 12, Problem 2P

A

Summary Introduction

Interpretation: The required average aggregate inventory value, if the company is maintaining the same inventory turnover for the next year is to be determined.

Concept Introduction: The Company has ended the year with an annual sale of $48 million. In that year, the company has experienced a six times increase in its inventory of accessories. Now, for the next year, the company is planning to raise its annual sales by 25%.

B

Summary Introduction

Interpretation: Changes in inventory turns are to be discussed that should be adapted by Cyberphone to support next year’s sales with no increase in the average aggregate inventory value through better supply chain management.

Concept Introduction: The Company has ended the year with an annual sale of $48 million. In that year, the company has experienced a six times increase in its inventory of accessories. Now, for the next year, the company is planning to raise its annual sales by 25%.

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Answer 3

Question

Chapter 12, Problem 2P

A

Summary Introduction

Interpretation: The required average aggregate inventory value, if the company is maintaining the same inventory turnover for the next year is to be determined.

Concept Introduction: The Company has ended the year with an annual sale of $48 million. In that year, the company has experienced a six times increase in its inventory of accessories. Now, for the next year, the company is planning to raise its annual sales by 25%.

B

Summary Introduction

Interpretation: Changes in inventory turns are to be discussed that should be adapted by Cyberphone to support next year’s sales with no increase in the average aggregate inventory value through better supply chain management.

Concept Introduction: The Company has ended the year with an annual sale of $48 million. In that year, the company has experienced a six times increase in its inventory of accessories. Now, for the next year, the company is planning to raise its annual sales by 25%.

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Answer 4

Question

Chapter 12, Problem 2P

A

Summary Introduction

Interpretation: The required average aggregate inventory value, if the company is maintaining the same inventory turnover for the next year is to be determined.

Concept Introduction: The Company has ended the year with an annual sale of $48 million. In that year, the company has experienced a six times increase in its inventory of accessories. Now, for the next year, the company is planning to raise its annual sales by 25%.

B

Summary Introduction

Interpretation: Changes in inventory turns are to be discussed that should be adapted by Cyberphone to support next year’s sales with no increase in the average aggregate inventory value through better supply chain management.

Concept Introduction: The Company has ended the year with an annual sale of $48 million. In that year, the company has experienced a six times increase in its inventory of accessories. Now, for the next year, the company is planning to raise its annual sales by 25%.

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Answer 5

Chapter 12, Problem 2P

A

Summary Introduction

Interpretation: The required average aggregate inventory value, if the company is maintaining the same inventory turnover for the next year is to be determined.

Concept Introduction: The Company has ended the year with an annual sale of $48 million. In that year, the company has experienced a six times increase in its inventory of accessories. Now, for the next year, the company is planning to raise its annual sales by 25%.

B

Summary Introduction

Interpretation: Changes in inventory turns are to be discussed that should be adapted by Cyberphone to support next year’s sales with no increase in the average aggregate inventory value through better supply chain management.

Concept Introduction: The Company has ended the year with an annual sale of $48 million. In that year, the company has experienced a six times increase in its inventory of accessories. Now, for the next year, the company is planning to raise its annual sales by 25%.

Answer 6

Chapter 12, Problem 2P

A

Summary Introduction

Interpretation: The required average aggregate inventory value, if the company is maintaining the same inventory turnover for the next year is to be determined.

Concept Introduction: The Company has ended the year with an annual sale of $48 million. In that year, the company has experienced a six times increase in its inventory of accessories. Now, for the next year, the company is planning to raise its annual sales by 25%.

Answer 7

Chapter 12, Problem 2P

A

Summary Introduction

Interpretation: The required average aggregate inventory value, if the company is maintaining the same inventory turnover for the next year is to be determined.

Concept Introduction: The Company has ended the year with an annual sale of $48 million. In that year, the company has experienced a six times increase in its inventory of accessories. Now, for the next year, the company is planning to raise its annual sales by 25%.

Answer 8

B

Summary Introduction

Interpretation: Changes in inventory turns are to be discussed that should be adapted by Cyberphone to support next year’s sales with no increase in the average aggregate inventory value through better supply chain management.

Concept Introduction: The Company has ended the year with an annual sale of $48 million. In that year, the company has experienced a six times increase in its inventory of accessories. Now, for the next year, the company is planning to raise its annual sales by 25%.

Answer 9

B

Summary Introduction

Interpretation: Changes in inventory turns are to be discussed that should be adapted by Cyberphone to support next year’s sales with no increase in the average aggregate inventory value through better supply chain management.

Concept Introduction: The Company has ended the year with an annual sale of $48 million. In that year, the company has experienced a six times increase in its inventory of accessories. Now, for the next year, the company is planning to raise its annual sales by 25%.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 12 - Prob. 1DQ Ch. 12 - Prob. 2DQ Ch. 12 - Prob. 3DQ Ch. 12 - EBI Solar uses a high-tech process to turn silicon...Ch. 12 - Prob. 2P Ch. 12 - Prob. 3P Ch. 12 - Prob. 4P Ch. 12 - Prob. 5P Ch. 12 - Prob. 6P Ch. 12 - Prob. 7P

Solution Summary: The author analyzes how the company's annual sales increased by six times, and now plans to raise its sales by 25%.

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Chapter 12 Solutions