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Cyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales ( at cost ) of $ 4 8 million. During the
Cyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales at cost of $
million. During the year, the inventory of accessories turned over six times. For the next year, Cyberphone plans to
increase annual sales at cost by percent.
a What is the increase in the average aggregate inventory value required if Cyberphone maintains the same inventory
turnover during the next year? $Enter your response as an integer.
b What change in inventory turns must Cyberphone achieve if through better supply chain management, it wants to
support next year's sales with no increase in the average aggregate inventory value? turns. Enter your response
rounded to one decimal place.
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