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Luther Industries had sales of $980 million and a cost of goods sold of $560 million in 2019.A simplified balance sheet for the firm appears below:
Luther Industries
Balance Sheet
As of December 31,2019
(millions of dollars)
-Luther's inventory days is closest to:
Constraint
A limitation or restriction that affects the performance or capacity of a process, system, or organization.
Profitability
The ability of a company or product to generate income over cost, leading to profit.
Mixing Machines
Equipment used in manufacturing and baking industries to blend or mix ingredients into a homogeneous substance.
Variable Cost
Costs that vary directly with the level of production output, such as materials and labor, in contrast with fixed costs, which remain constant regardless of output.
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