Question

Spotech co's budgeted sales and budgeted cost of sales for the coming year are $212,000,000 and $132,500,000, respectively. Short term interest rates are expected to average 5%. If spotech could increase inventory turnover from its current 8.0 times per year to 10.0 times per year, its expected cost saving in the current year would be

Answer 1

Short-term interest rates are expected to be 5%. ... If Spotech could increase inventory turnover from its ... thanks. but why is it coming year cost of sales divided by 8?