Kornowski Company Has the Following Data $\begin{array}{lccc}\text { Inventory } &&&&&&& \$65 && \$ 50& \ & \$40\end{array}$

question 60

Multiple Choice

Kornowski Company has the following data: $\begin{array}{llll}&2X13&2X12&2X11\\\text { Sales (all credit sales) } & \$ 800 & \$ 740 & \$ 675 \\\text { Less Cost of Goods Sold } & \underline{525} & \underline{490} &450\\\text { Gross Profit }& \$ 275 &\$ 250 &\$ 225\\\end{array}$
$\begin{array}{lccc}\text { Inventory } &&&&&&& \$65 && \$ 50& \ & \$40\end{array}$
What is the inventory turnover for Kornowski Company in 2X13? Has the inventory turnover improved or not improved since 2X12?

• A)8)10,improved
• B)8)10,not improved
• C)9)13,improved
• D)9)13,not improved
• E)91,not improved

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Definitions:

Total Variable Cost

The sum of all costs that vary with output level, including costs such as labor and materials.

Shut Down

This term refers to a short-term decision made by a firm to cease operations when the market price falls below the minimum average variable cost.

Scale of Production

Refers to the level at which production activities are aggregated or expanded, affecting the unit costs and capability of the production process.

Lower

To decrease in position, value, or condition.