A Company Has an Average Inventory on Hand of $75,000

question 95

Multiple Choice

A company has an average inventory on hand of $75,000 and its average days in inventory is 36.5 days. What is the cost of goods sold?

• A) $750,000
• B) $1,752,000
• C) $1,680,000
• D) $876,000

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Definitions:

Supply Curve

Relationship between the quantity of a good that producers are willing to sell and the price of the good.

Trucking Services

Businesses that provide transportation of goods via motor vehicles such as trucks over short or long distances.

Pollutants

Substances that cause pollution, contaminating the air, water, and soil, and potentially causing harm to ecosystems and human health.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded in a market.