• • 11.6 A company buys an item for €50 and sells it for €75.

The annual sales and average stock of this item are 10,000 units and 1,600 units, respectively, while the carrying cost is 20% of its acquisition cost. Calculate:

a) inventory turnover

b) weeks of supply

c) annual gross profit

d) average investment in stock

e) annual inventory carrying cost Would the company operate more efficiently if average stock is reduced to 1,000 units?