67. Ninety-percent of X company's total sales of $600,000 is on credit. If its year-end receivables turnover is 5, the average collection period (based on a 365-day year) and the year-end receivables are, respectively:

a) 365 days and $108,000.

b) 73 days and $120,000.

c) 73 days and $108,000.

d) 81 days and $108,000.

68. Costs of not carrying enough inventory include:

a) lost sales.

b) customer disappointment.

c) possible worker layoffs.

d) all of these.

69. Which of the following relationships hold true for safety stock?

a) the greater the risk of running out of stock, the smaller the safety of stock.

b) the larger the opportunity cost of the funds invested in inventory, the larger the safety stock.

c) the greater the uncertainty associated with forecasted demand, the smaller the safety stock.

d) the higher the profit margin per unit, the higher the safety stock necessary.