Suppose
the revenue for a firm is $2,500,000. Its cost of goods sold is $85,000, and
its average inventory value for the year is $62,000. What is the firm’s
inventory turnover?
Please include the formula, at least
one step of calculation, and the correct answer for full credit. (6 points)
3. Given the following information, compute the
economic order quantity of the inventory system.


Annual Demand

50,000 units

Order Cost

$150 per order

Unit Cost

$100 per unit

Inventory Holding

10% of unit cost

Please include the formula, at least
one step of calculation, and the correct answer for full credit.