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Calculate the length of DST ' s operating cycle for 2 0 2 2 . Regarding the Cash Conversion Cycle.... 8 a . Calculate the

Calculate the length of DST's operating cycle for 2022.
Regarding the Cash Conversion Cycle....
8a. Calculate the length of DST's 2022 cash conversion cycle.
8b. Challenge Question: Interpret DST's cash conversion cycle and tell me who's apparently
doing a good job and who isn't.
The owners of Le trou de l'argent of Trois-Rivires, which specializes in high-end
snowmobiles, are piloting a new sales approach: They've opened a small pop-up shop across
from the food court (the highest traffic area) in the Champlain Mall in Moncton. It will
operate October through January. They'll carry only the most high-performing and expensive
models, such as the Yamaha Sidewinder S-TX and the Alpina Superclass 1.2LVVT, each of
which will set you back $30,000 all-in. They will have only six models on display and only a
handful more in the backroom. They hope to sell 100 of the snow machines during the season
and since the season equals their sales year, they thus expect to sell 100 for the year. Given
the square-footage of the Moncton store, and the extra-high rate paid for the prime location
and short-term lease (during the most important sales quarter of the year), carrying costs are
estimated at $6,000 per snowmobile (annualized). When they order, they'll purchase from a
wholesaler in Montral that will charge them a flat fee of $1,500 per order, no matter how
many snowmobiles they order. Given all this information, what is their optimal order size?
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