Operating Cycle: Le Baron Company, a Men's Designer Company, Has

question 60

Multiple Choice

Operating cycle: Le Baron Company, a men's designer company, has an operating cycle of 123 days. The company's days' sales in inventory is 73 days. How much does the company have in receivables if it has credit sales of $433,450? Round to the nearest dollar.

• A) $59,377
• B) $71,252
• C) $47,501
• D) $64,233

---

Definitions:

Markup

The extra charge added onto the purchase price of products to account for operational costs and generate profit.

Predetermined Overhead Rate

A rate calculated before the period begins, used to allocate manufacturing overhead to products based on a specific activity base.

Fixed Manufacturing Overhead

The static costs associated with manufacturing a product, which do not change with the volume of production, such as rent and salaries.

Job A496

This term could refer to a specific job or project identifier within a company, often used for tracking purposes.