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B MOBILE RADIO CORPORATION MAKES A CAR RADIO RECENTLY IT WON A 12 MONTH CONTRACT TO INSTALL 35,000 OOF THEIR TOP END RADIO CD/DVD/EQUIPMENTIN THE
B MOBILE RADIO CORPORATION MAKES A CAR RADIO RECENTLY IT WON A 12 MONTH CONTRACT TO INSTALL 35,000 OOF THEIR TOP END RADIO CD/DVD/EQUIPMENTIN THE NEW 2020 GMC TRUCKS. CURRENTLY WITHOUT THE GMC ACCOUNT, MOBILE COST OF GOODS SOLD FOR $3,500,000 FOR THE CAR RADIOS ANNUALLY. THE COST OF GOODS SOLD FOR THE NEW CONTRACT WILL BE $500,000 $500,000 1) WITHOUT THE GMC TRUCK CONTRACT, MOBILE RADIO KEEPS AN AVERAGE OF $875,000 WORTH OF INVENTORY. HOW OFTEN DOES MOBILE'S INVENTORY TURN? 2) WITH THE GMC ACCOUNT INCLUDED, HOW MUCH INVENTORY WOULD MOBILE HAVE TO KEEP ON HAND TO MAINTAIN THEIR CURRENT INVENTORY TURNS? 3) IF MOBILE GETS 12% ANNUAL RETURN ON AN INVESTMENT IN CAPITAL ASSESTS, WHAT IS OPPORTUNITY COSTS MOBILE IS FACING IN TAKING THE GMC CONTRACT? CURRENT TARGETTED COST OF GOODS SOLD INVENTORY TURNOIVER INVENTORY LEVEL CHANGE IN INVENTORY PROFIT B MOBILE RADIO CORPORATION MAKES A CAR RADIO RECENTLY IT WON A 12 MONTH CONTRACT TO INSTALL 35,000 OOF THEIR TOP END RADIO CD/DVD/EQUIPMENTIN THE NEW 2020 GMC TRUCKS. CURRENTLY WITHOUT THE GMC ACCOUNT, MOBILE COST OF GOODS SOLD FOR $3,500,000 FOR THE CAR RADIOS ANNUALLY. THE COST OF GOODS SOLD FOR THE NEW CONTRACT WILL BE $500,000 $500,000 1) WITHOUT THE GMC TRUCK CONTRACT, MOBILE RADIO KEEPS AN AVERAGE OF $875,000 WORTH OF INVENTORY. HOW OFTEN DOES MOBILE'S INVENTORY TURN? 2) WITH THE GMC ACCOUNT INCLUDED, HOW MUCH INVENTORY WOULD MOBILE HAVE TO KEEP ON HAND TO MAINTAIN THEIR CURRENT INVENTORY TURNS? 3) IF MOBILE GETS 12% ANNUAL RETURN ON AN INVESTMENT IN CAPITAL ASSESTS, WHAT IS OPPORTUNITY COSTS MOBILE IS FACING IN TAKING THE GMC CONTRACT? CURRENT TARGETTED COST OF GOODS SOLD INVENTORY TURNOIVER INVENTORY LEVEL CHANGE IN INVENTORY PROFIT
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