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C&A sells 2,000 dozen eggs each day. If C&A’s days-of-supply increases from 2 days to 5...

C&A sells 2,000 dozen eggs each day. If C&A’s days-of-supply increases from 2 days to 5 days, what will happen to its average inventory?

A. Increase from 4,000 to 10,000

B. Decrease from 1,000 to 400

C. Remain the same

D. Cannot be determined

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Answer #1

Given,

C\&A sells 2000 dozen eggs/ Day

Days of supply increase is from 2 days to 5 days

Calculate the average inventory for 2 days:

\(=2^{*} 2000=4000\)

Calculate the average inventory for 5 days:

\(=5^{*} 2000=10,000\)

Thus, Option A (Increase from 4,000 to 10,000 ) is the correct option

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