Cyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales (at cost) of $42 million. During the year, the inventory of accessories turned over six times. For the next year, Cyberphone plans to increase annual sales (at cost) by 24 percent. a. What is the increase in the average aggregate inventory value required if Cyberphone maintains the same inventory turnover during the next year? $. (Enter your response as an integer.) b. What change in inventory turns must Cyberphone achieve if, through better supply chain management, it wants to support next year's sales with no increase in the average aggregate inventory value? turns. (Enter your response rounded to one decimal place.)
Cyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales (at cost) of $42 million. During the year, the inventory of accessories turned over six times. For the next year, Cyberphone plans to increase annual sales (at cost) by 24 percent. a. What is the increase in the average aggregate inventory value required if Cyberphone maintains the same inventory turnover during the next year? $. (Enter your response as an integer.) b. What change in inventory turns must Cyberphone achieve if, through better supply chain management, it wants to support next year's sales with no increase in the average aggregate inventory value? turns. (Enter your response rounded to one decimal place.)
Chapter15: Retailing, Direct Marketing, And Wholesaling
Section15.1: L.l.bean: Open 24/7, Click Or Brick
Problem 2VC
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![Cyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales (at cost) of $42
million. During the year, the inventory of accessories turned over six times. For the next year, Cyberphone plans to
increase annual sales (at cost) by 24 percent.
a. What is the increase in the average aggregate inventory value required if Cyberphone maintains the same
inventory turnover during the next year? $. (Enter your response as an integer.)
b. What change in inventory turns must Cyberphone achieve if, through better supply chain management, it wants to
support next year's sales with no increase in the average aggregate inventory value? turns. (Enter your response
rounded to one decimal place.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F52cef1cc-2bf3-4562-9378-7147e4fa1721%2F2fc59044-b312-4b84-979b-95161bc7f553%2Frztb48_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales (at cost) of $42
million. During the year, the inventory of accessories turned over six times. For the next year, Cyberphone plans to
increase annual sales (at cost) by 24 percent.
a. What is the increase in the average aggregate inventory value required if Cyberphone maintains the same
inventory turnover during the next year? $. (Enter your response as an integer.)
b. What change in inventory turns must Cyberphone achieve if, through better supply chain management, it wants to
support next year's sales with no increase in the average aggregate inventory value? turns. (Enter your response
rounded to one decimal place.)
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