Calculate Inventory Turnover at Cost (To Nearest Tenth)

question 105

Short Answer

Calculate inventory turnover at cost (to nearest tenth):
$$\begin{array} { | l | l | l | l | } \hline \text { Ending Inventory } & \$ 35,000 & \text { Beginning Inventory } & \$ 25,000 \\\hline \text { Cost of goods sold } & \$ 42,00 & \text { Net Sales } & \$ 5,800 \\\hline\end{array}$$

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Definitions:

Contribution Margin Ratio

A financial metric that shows the percentage of sales revenue that exceeds variable costs, indicating the portion contributing to covering fixed costs and generating profit.

High-Low Method

A technique that uses the highest and lowest total costs as a basis for estimating the variable cost per unit and the fixed cost component of a mixed cost.

High-Low Method

A technique used in managerial accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.

Variable Utilities Cost

The portion of utility expenses that varies with the level of business activity or production volume.