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10) CR.A sels wo kinds of andwiches regular and deluve Each regular sandwich cos

ID: 382866 • Letter: 1

Question

10) CR.A sels wo kinds of andwiches regular and deluve Each regular sandwich costs $1 to make and sandwich costs $2 to make. On average, C&A; has 5 regular and 10 deluxe sandwiches in y and 0.5 days-of-supply. How many sandwiches does C&A; expect to sell each day? A) 30 B) 50 C100 D) 15 Deluxe $2 Days of upply 05 11) C&A; has annual turns of 10, cost of goods sold of $9 million, and revenue of $20 million. What is its average inventory? A) $20 million B) $90 million C)$1.1 million D) s0.9 million

Explanation / Answer

10. as the supply is of 0.5 days, so

in one day the amount should be doubled:

So 0.5 = 5 regular and 10 deluxe

15 in 0.5 days, so in 1 day

15*2 = 30

Option A

11.

As cost of goods sold is 9 million

no of turns = 10

So average inventory = COGS/Turns = 9/10 = 0.9 millions

Hence option D

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