Sandy Shores,Inc From 2017 to 2018,the Company's Management of Inventory Is

question 172

Multiple Choice

Sandy Shores,Inc.reported the following amounts in its financial statements: $\begin{array}{lrr}&2018&2017\\\text { Average merchandise inventory } & \$ 200,000 & \$ 120,000 \\\text { Cost of goods sold } & 4,000,000 & 3,000,000\end{array}$ From 2017 to 2018,the company's management of inventory is

• A)declining,because the number of days' sales in inventory is getting larger.
• B)increasing,because the number of days' sales in inventory is getting larger.
• C)declining,because the number of days' sales in inventory is getting smaller.
• D)increasing,because the number of days' sales in inventory is getting smaller.

---

Definitions:

Unit Contribution Margin

Unit Contribution Margin is the difference between the selling price of a unit and the variable cost associated with making that unit, indicating how much each unit contributes to covering fixed costs and generating profit.

Advertising Budget

The amount of money allocated for promoting products, services, or a brand during a specific period.

Net Operating Income

A measure of a company's profitability that excludes interest and income tax expenses.

Monthly Sales

The total revenue generated from the sale of products or services within a specific month.