Paul's Manufacturing Has Sales of $810,000

question 386

Multiple Choice

Paul's Manufacturing has sales of $810,000. The cost of goods sold is equal to 80% of sales. The firm has an average inventory of $11,500. How many days on average does it take the firm to sell its inventory?

• A) 3.24 days
• B) 5.18 days
• C) 6.48 days
• D) 56.35 days
• E) 70.43 days

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Definitions:

Competition

The rivalry among businesses or individuals for customers, market share, or achievements.

Per Se Approach

A legal standard that deems certain actions to be inherently illegal without needing to prove harm or anticompetitive effects.

Fixed Price

An agreed upon price for goods or services that is not subject to change under normal circumstances.

Dodd-Frank

The Dodd-Frank Act is comprehensive financial reform legislation enacted in the United States in 2010, aimed at reducing risks in the financial system and protecting consumers.