Register now or log in to join your professional community.
If the IT is improved to8 times while the COGS remains the same,
a substantial amount of funds is released from or additionally invested in inventory. In fact,
$160,000 is released.
$100,000 is additionally invested.
$60,000 is additionally invested.
$60,000 is released.
>>>>>>>>>>>> $60,000 is released.
Hi
This is correct answer the old turnover is800,000/5 =160,000 and New turnover is800,000/8 =100,000 so, 160,000-100,000 =60,000 is released from the inventory amount
60000 will be released>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
The fund amounted to $60,000 will be released for increase inventory turnover & unchanged cost of goods sold.
Agree with Mr. Emad<<<>>><<<>>>
$100,000 is additionally invested
Agree with Mr. Emad answer <<<<<<<<<<<<
The old turnover is 800,000/5 =160,000
and New turnover is800,000/8 =100,000
Therefore, 160,000-100,000 =60,000 is released
*************** $60,000 is released.
