Question
Dogs-R-Us and K-9 Inc. are two retail stores that cater to the needs of dog owners in the great Charleston area. There is healthy competition
Dogs-R-Us and K-9 Inc. are two retail stores that cater to the needs of dog owners in the great Charleston area. There is healthy competition between these two establishments. Both operate 52 weeks a year and both sell approximately the same type and dollar value of items. Table 12.4 provides the cost of goods sold, the average inventory level, and the unit value of each item sold in the two stores.
a. Compare the two retail stores in terms of average aggregate inventory value.
b. Compare the two retail stores in terms of weeks of supply.
c. Compare the two retail stores in terms of inventory turnover.
\begin{tabular}{|c|c|c|c|c|} \hline & Dogs-R-Us & & K-9 Inc. & \\ \hline \begin{tabular}{c} Cost of Goods \\ Sold \end{tabular} & $560,000.00 & & $640,000.00 & \\ \hline Category & \begin{tabular}{c} Average Inventory in \\ Units \end{tabular} & \begin{tabular}{c} Value per \\ Unit \end{tabular} & \begin{tabular}{c} Average Inventory in \\ Units \end{tabular} & \begin{tabular}{c} Value per \\ Unit \end{tabular} \\ \hline Dog Beds & 200 & $55.00 & 140 & $55.00 \\ \hline \begin{tabular}{c} Dog Bones \& \\ Treats \end{tabular} & 1,200 & $2.50 & 250 & $2.50 \\ \hline Pet Feeders & 50 & $12.00 & 20 & $12.50 \\ \hline Flea \& Tick & 350 & $7.50 & 75 & $7.50 \\ \hline Dog Kennels & 10 & $65.00 & 2 & $65.00 \\ \hline Dog Pens & 10 & $220.00 & 3 & $220.00 \\ \hline Patio Pet Doors & 5 & $120.00 & 2 & $120.00 \\ \hline Dog Ramps & 5 & $150.00 & 2 & $150.00 \\ \hline Pet Strollers & 10 & $40.00 & 2 & $40.50 \\ \hline Pet Supplements & 1,400 & $4.50 & 150 & $4.50 \\ \hline Dog Toys & 250 & $2.20 & 100 & $2.20 \\ \hline \end{tabular}Step by Step Solution
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