Question
The following table shows the financial data (year 2006) of Dirt Cheap Wholesale and Kwiki-Mart, two American retailers. Both companies have an average annual maintenance
The following table shows the financial data (year 2006) of Dirt Cheap Wholesale and Kwiki-Mart, two American retailers. Both companies have an average annual maintenance cost of 20%.
wholesale cheap dirt | Tiendas Kwiki-Mart | |
Inventories ($ million) | 4754 | 40894 |
Sales (millions of net dollars) | 59217 | 397206 |
COGS ($ million) | 52762 | 326606 |
How many days (numbers round to two digits after the decimal), on average, does a product sit in Dirt Cheap's inventory before it is sold? Assume that the stores operate 365 days a year. How much does it cost Kwiki-Mart (numbers round to two digits after decimal) to maintain an item valued at $50?
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