A Farm Supply Store Starting with a $40,000 Inventory at Cost

question 8

Multiple Choice

A farm supply store starting with a $40,000 inventory at cost expects to sell $400,000 (cost of sales) of merchandise in the coming year. It plans to turn over its stock 10 times during the year. How much merchandise must the shop purchase during the year?

• A) $200,000
• B) $400,000
• C) $420,000
• D) $440,000
• E) None of the above.

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General Form

A way of expressing something that is not specific to any particular case but can apply broadly across instances.

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A claim within mathematics that equates two expressions as being identical.

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Describes two lines, planes, or surfaces meeting at a right angle (90 degrees).

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A straight line with no slope, moving left to right parallel to the x-axis in Cartesian coordinates.