For 2022, Superplus Inc

question 70

Multiple Choice

For 2022, Superplus Inc.reported $48,000 beginning inventory and $52,000 ending inventory.Net sales were $320,000 and gross profit was $110,000 for the same period.Based on these figures, inventory turnover for 2022 was

• A)3.4 times.
• B)4.2 times.
• C)6.4 times.
• D)9.2 times.

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Definitions:

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up over a period.

Fixed Costs

Costs that do not vary with the level of production or sales, remaining constant regardless of the business activity level.

Contribution Margin

The selling price per unit, minus the variable cost per unit, indicating how much of each sale contributes to covering fixed costs.

Rapidly Changing Technology

Rapidly changing technology refers to the swift advancement in technological innovations and developments that can significantly affect industries and markets.