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If a Firm Has Sales Revenue (Spread Evenly Through a 360-Day

question 139

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If a firm has sales revenue (spread evenly through a 360-day year) of $1,170,000 and accounts receivable of $130,000, its average collection period, or days sales outstanding, is 40 days.


Definitions:

Marginal Cost

The financial outlay involved in producing a supplementary unit of a good or service.

Crude Oil

A naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials, used as a primary energy source.

Industry Output

The total production of goods and services produced by a specific sector of the economy over a given period.

Marginal Cost

The cost incurred from producing one additional unit of a good or service.

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