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 millionExplanation / 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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