Jen Industries Had Sales of $32 Million This Year and an Average

question 104

Multiple Choice

Jen Industries had sales of $32 million this year and an average accounts receivable of $0.8 million per day. On average, how long does it take to collect on its sales?

• A) 9 days
• B) 11 days
• C) 12 days
• D) 19 days

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Definitions:

Equilibrium Quantity

The amount of products or services offered and sought at the equilibrium price, a point where the supplied quantity matches the demanded quantity.

Equilibrium Price

The cost at which the amount of a product that buyers want to purchase matches the amount sellers are willing to offer, leading to a balanced market situation.

Labor Market

The market in which individuals offer their labor to employers in exchange for wages, showing the relationship between the supply of labor and the demand for it.

Marginal Product

The additional output that is produced by employing one more unit of a factor of production, keeping all other inputs constant.