ENTREPRENEURIAL DECISION A3 BTN 5-7 Review the chapter's opening feature highlighting the Dame brothers (Brooks, Taylor, and Tanner) andtheir company, Proof Eyewear. Assume that Proof Eyewear consistently maintains an inventory level of $30,000,meaning that its average and ending inventory levels are the same. Also assume its annual cost of sales is $120,000.To cut costs, the Dame brothers propose to slash inventory to a constant level of $15,000 with no impact on cost ofsales. They plan to work with suppliers to get quicker deliveries and to order smaller quantities more often.

Required 1. Compute the company's inventory turnover and its days' sales in inventory under (a) current conditions and

(b) proposed conditions. 2. Evaluate and comment on the merits of their proposal given your analysis for part 1. Identify any concernsyou might have about the proposal.

ENTREPRENEURIAL DECISION A3 BTN 5-7 Review the chapter's opening feature highlighting the Dame brothers (Brooks, Taylor, and Tanner)andtheir company, Proof Eyewear. Assume that Proof Eyewear consistently maintains an inventory level of$30,000,meaning that its average and ending inventory levels are the same. Also assume its annual cost ofsales is $120,000.To cut costs, the Dame brothers propose to slash inventory to a constant level of $15,000with no impact on cost ofsales. They plan to work with suppliers to get quicker deliveries and to ordersmaller quantities more often.

Required 1. Compute the company's inventory turnover and its days' sales in inventory under (a) current conditionsand(b) proposed conditions.2. Evaluate and comment on the merits of their proposal given your analysis for part 1. Identify anyconcernsyou might have about the proposal.