Suppose demand is 45 units a month,average inventory is 60 units,and unit cost is $20.What is the annual inventory turnover?
A)10
B)9
C)0.75
D)15

Name: Suppose demand is 45 units a month,average inventory is 60 units,and unit cost is $20.What is the annual inventory turnover? A)10 B)9 C)0.75 D)15
Brand: Quizplus
Rating: 4.9 (41 reviews)

Question

Quizplus · Accepted Answer

Annual demand = 45 units/month x 12 months = 540 units
Inventory turnover = Annual demand / Average inventory = 540 units / 60 units = 9 times per year.

Therefore, the answer is choice B) 9.

Suppose Demand Is 45 Units a Month,average Inventory Is 60