A company has annual turns of 8.4 for a product. The company currently places orders for...

A company has annual turns of 8.4 for a product. The company currently places orders for 200 units each time it replenishes its inventory. How many units of this product does the company sell each year?

Expert Solution

Inventory turnover = Units sold or Cost of goods sold / Average inventory

Avg inventory = Order size / 2 = 200 / 2= 100units

Hence, 8.4 = Units of product sold / 100

Units of product sold = 840

keosha answered 2 years ago

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