(Inventory Cost) A manufacturing company producing medical devices reported $60,000,000 in sales… 1 answer below »


(Inventory Cost) A manufacturing troop supple medical devices reputed $60,000,000 in sales aggravate the last year. At the end of the corresponding year, the troop had $20,000,000 excellence of schedule of ready-to-ship devices.

a. Assuming that aces in schedule are valued (grounded on COGS) at $1,000 per ace and are sold for $2,000 per ace, how pay does the troop reverse its schedule? The troop uses a 25 percent per year absorb of schedule. That is, for the provided predicament that one ace of $1,000 would sit accurately one year in schedule, the troop beak its operations resistance a $250 schedule absorb. [2.4]

b. What—in despotic terms—is the per ace schedule absorb for a consequence that absorbs $1,000? [2.4]