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If a company, through global sourcing, decreased direct material by 6% operating profit will increase by $ % Sales Rev 1,000,000 100 Cost of Goods Sold (COGS) Direct Material 400,000 40 Direct Labor 200,000 20 Factory Overhead 300,000 30 Total COGS 900,000 90 Operating Profit =100000 =10 O 16% O a sales increase of 6% cannot be determined because the change in sales revenue is not known O cannot be determined because operating profit before the decrease is not known O 6% Question 12 5 pts A bicycle motorcross (BMX) bike manufacturer has one distribution center at it’s manufacturing facility on the west coast and would like to open a DC in each region of the United States in order to be able to respond to customer orders in a more timely manner. The distribution center has an inventory of 1000 bikes. Which inventory management technique can be used to tell a company now much inventory should be held in each DC as they add DCs to their network? order-to-cash cycle Pareto Analysis O EOQ activity-based costing square-root rule
 
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