Wunder Boy Bat Co

question 43

Multiple Choice

Wunder Boy Bat Co.has an average age of inventory equal to 121.67 days.If its end of year inventory level is $4,000,then what does that imply for the cost of goods sold during the year? (round to the nearest dollar)

• A) $1,333
• B) $3,000
• C) $12,000
• D) $16,000

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Definitions:

Total Cost

The complete amount of money spent on the production of goods or services, including all variable and fixed costs.

Break-even Point

The point at which total costs equal total revenue, with no profit or loss, indicating the minimum sales volume needed to cover all expenses.

Fixed Costs

Expenses that do not change with the level of production or business activity, such as rent, salaries, and insurance.

Unit Variable Cost

The cost associated with producing one additional unit of a product, excluding fixed costs.