Contemporary Mathematics for Business & Consumers 8th Edition by Robert Brechner,Geroge Bergeman

Exercise 28

Kwik-Mix Concrete Corporation had cost of goods sold of $1,250,000 for the third quarter. The beginning inventory at cost was $135,000, and die ending inventory at cost amounted to $190,900. The inventory turnover rate published as the industry standard for a business of this size is 9.5 times.
a. Calculate the average inventory and actual inventory turnover rate for the company.
b. If the turnover rate is less than 9.5 times, calculate the target average inventory needed to theoretically come up to industry standards.