Blue Mountain Foods Has Net Fixed Assets of $89,700 and Current

question 82

Multiple Choice

Blue Mountain Foods has net fixed assets of $89,700 and current assets of $38,400,of which $21,400 is inventory.What is the common-size statement value of inventory?

• A)23.86%
• B)18.56%
• C)16.71%
• D)55.73%
• E)24.71%

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product and included in the product cost.

Electricity

A form of energy resulting from the existence of charged particles, used as a power source.

Assembly Worker

An individual employed in the manufacturing sector whose primary role involves assembling components or products.

Mixed Costs

Expenses that have both a fixed and a variable component, changing with the level of production or sales activity but also including a constant element.