Which Company Will Have the Lower Number of Days to Sell

question 204

Multiple Choice

Which company will have the lower number of days to sell?

• A)Company A whose cost of goods sold equals $8,000 and whose average inventory is $500.
• B)Company B whose cost of goods sold equals $4,000 and whose average inventory is $200.
• C)Company C whose cost of goods sold equals $2,000 and whose average inventory is $200.
• D)There is not enough information to answer this question.

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Definitions:

Total Revenue

The overall earnings from sales of goods or services prior to any expense deductions.

Demand Curve

A visual chart that illustrates the connection between a product's price and the amount consumers are willing to buy.

Prices

The amount of money expected, required, or given in payment for something, reflecting the value of goods or services in monetary terms.

Highest Price

The maximum value that has been paid for a good or service in a particular market or setting.