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The following table contains data about the inventory for 3 items at Jones Corporation. a. The item unit cost was as follows: Item 1=$22.00 Item
The following table contains data about the inventory for 3 items at Jones Corporation. a. The item unit cost was as follows: Item 1=$22.00 Item 2=$47.00 Item 3=$10.00 Compute the average unit inventory for each item. Then compute the dollar values of annual sales and average inventory for each item. b. Compute inventory turnover for each item using dollar values of annual sales and average inventory. Also, compute the total inventory turnover for the aggregate inventory for Jones Corporation. Is the total inventory turnover a sum of inventory turnovers for the three items? c. Suppose Jones Corporation determined that its annual inventory holding cost =26% of inventory value. Compute the average inventory holding cost for each item. d. Suppose Jones Corporation believes that in the upcoming year, the rate of sales expected for each of the 3 items is as follows: Item 1=32,500 units per week Item 2=38,000 units per week Item 3=36,800 units per week Compute the weeks of supply for each item. Which unit inventory should you use for
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