Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 dirtTiendas Kwiki-Mart
Inventories ($ million)475440894
Sales (millions of net dollars)59217397206
COGS ($ million)52762326606

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?

Step by Step Solution

3.47 Rating (163 Votes )

There are 3 Steps involved in it

Step: 1

To calculate the number of days a product sits in Dirt Cheap Wholesales inventory before it is sold ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Matching Supply with Demand An Introduction to Operations Management

Authors: Gerard Cachon, Christian Terwiesch

3rd edition

73525200, 978-0073525204

More Books

Students also viewed these Finance questions

Question

Discuss the issues associated with change and change management.

Answered: 1 week ago

Question

Explain why having a minimum voting age may cause rent-seeking.

Answered: 1 week ago