BadBanna Co

question 86

Multiple Choice

BadBanna Co.has an average age of inventory equal to 25 days.If its end of year inventory level is $8,500,then what does that imply for the cost of goods sold during the year? (round to the nearest dollar)

• A) $582
• B) $4964
• C) $21,250
• D) $124,100

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Definitions:

Equilibrium Price

The price level where the amount of products provided matches the amount of products customers want to buy.

Equilibrium Price

The price at which the quantity of a product offered for sale matches the quantity that buyers are willing to buy, leading to a stable market condition.

Price Floor

A government- or group-imposed limit on how low a price can be charged for a product, above the equilibrium price, leading to surpluses.

Surplus

A situation where the quantity supplied exceeds the quantity demanded at the current price; often refers to excess in budget or resources.