Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bettamould Plc makes plastic tubes and parts used in plumb- ing in buildings. They had sales of 120 million and a gross margin of

image text in transcribed 

Bettamould Plc makes plastic tubes and parts used in plumb- ing in buildings. They had sales of 120 million and a gross margin of 30 percent last year. a. How much inventory can they hold to maintain an inventory turnover ratio of 5.0 times? b. A new purchasing manager has suggested that they can reduce the amount of inventory by 25 percent by using a new software to automate their order ing. If they invest in the new software and reduce the inventory by 25 percent, how will it affect their inventory turnover ratio?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

a To calculate the maximum amount of inventory Bettamould Plc can hold to maintain an inventory turn... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Principles and Applications

Authors: Sheridan Titman, Arthur Keown, John Martin

12th edition

133423824, 978-0133423822

More Books

Students also viewed these Finance questions

Question

derive P = rho * A * V ^ 3 using buckingham pi theorem

Answered: 1 week ago

Question

Define a traverse in Surveying?

Answered: 1 week ago