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

question 31

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 these alternatives is correct.

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Definitions:

Global Economy

An interconnected world economy where goods, services, and labor move freely across national borders, influenced by global events and market trends.

Average Worker

An employee representative of the general working population, often used in contexts to discuss labor trends, productivity, or demographics.

Working Prototype

An operational version of a product developed to test its functionality and design prior to mass production.

Product Technology

The incorporation of technological advancements into the development and improvement of a product.