With Net Sales of $40,000, Beginning Inventory at Retail of $14,000

question 74

Multiple Choice

With net sales of $40,000, beginning inventory at retail of $14,000, ending inventory at retail of $20,000, and cost of goods sold of $19,500, the inventory turnover at retail is (to the nearest hundredth) :

• A)5.15
• B)3.25
• C)2.35
• D)5.23
• E)None of these

---

Definitions:

Output

In economics, the amount of goods or services produced by a business, industry, or economy.

Marginal Cost Curve

A graph that shows the cost of producing one more unit of a good or service at any given level of production.

Average Total Cost (ATC)

The total cost of production (fixed and variable costs combined) divided by the number of units produced, indicating the average expense per unit of output.