(Solved): 2. Cheap Retailers The following table shows financial data (year 2006) for Dirt Cheap Wholesale an ...

2. Cheap Retailers The following table shows financial data (year 2006) for Dirt Cheap Wholesale and Kwiki-Mart, two US retailers. Inventories (SM) Sales (net $M) COGS (SM) DIRT CHEAP WHOLESALE 4754 59217 52762 KWIKI-MART STORES 40894 397206 326606 Assume that both companies have an average annual holding cost rate of 20% (i.e.it costs both retailers $2 to hold an item that they procured for $10 for one entire year). a. How many days, on average, does a product stay in Dirt Cheap's inventory before it is sold? Assume that stores operate 365 days a year. b. How much lower (expressed in $'s) is, on average, the inventory cost for Dirt Cheap compared to Kwiki-Mart of a house hold cleaner valued at $5 COGS? Assume that the unit cost of the household cleaner is the same for both companies and that the price and the inventory turns of an item are independent.