If the Lamy Company Has a Return on Sales of 10

question 170

Multiple Choice

If the Lamy Company has a return on sales of 10% and its inventory turnover is 9, what is its annual cost of goods sold (COGS) ? Also assume that Lamy's average inventory is $96,700 and its annual sales are $1,000,000.

• A) $870,000
• B) $850,000
• C) $870,300
• D) $790,000