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guajiro [1.7K]
3 years ago
6

A​ firm's database showed that the average value of all inventory items for the year was​ $7,650. the cost of goods sold was rep

orted at​ $76,500. because the company closes for two weeks each​ year, its business year is reduced in length. how many weeks of supply were held in​ inventory?
Business
1 answer:
Rainbow [258]3 years ago
6 0

5 weeks  
There are 52 weeks per year and since the company closes for 2 weeks per year, that means that the company does business for 50 weeks each year. During that year, the company sold goods that cost $76,500. And the average inventory was $7,650 which is $7,650 / $76,500 = 0.10 = 10% of the goods sold for the entire year. So the average inventory could allow the company to work for 10% of the year. And 10% of 50 is 5. Therefore the company had 5 weeks of supply on average in inventory.
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