Question
The following table presents you the ending inventory of four consecutive days, lost sales, orders placed, and items solved information on pieces of bread for
The following table presents you the ending inventory of four consecutive days, lost sales, orders placed, and items solved information on pieces of bread for a bakery shop. For this example, assume that the baker shop places an order to a factory and, therefore, receives those items on the same day. The average inventory cost per unit per day is $5. The lost sales cost per day per unit is $6. The bakery sells each bread at $10. It also costs them $10 to place an order. Estimate the total profit for four days. You do not need to compute beginning inventory to answer this question.
\begin{tabular}{|l|l|l|l|} \hline Ending inventory & Lost sales & Orders placed & Items sold \\ \hline 20 & No & No & 6 \\ \hline 14 & No & No & 6 \\ \hline 7 & No & No & 7 \\ \hline 3 & No & Yes and received & 4 \\ \hline \end{tabular}Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started