West Chester Automation Has an Inventory Turnover of 16 and an Accounts

question 109

Multiple Choice

West Chester Automation has an inventory turnover of 16 and an accounts payable turnover of 11. The accounts receivable period is 36 days. What is the length of the cash cycle?

• A)5.67 days
• B)25.63 days
• C)41.00 days
• D)52.00 days
• E)58.81 days

---

Definitions:

Marginal Revenue Product

The additional revenue generated from utilizing one more unit of an input, such as labor or capital, in the production process.

Monopolist

A singular entity that is the only provider of a particular product or service in the market, controlling the market and potentially manipulating prices and output.

Demand Elasticity

The measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating its sensitivity to price changes.

Planning Horizon

The time period over which a plan, projection, or decision is expected to unfold or have an impact.