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NikAS [45]
3 years ago
7

A recent physical inventory at a department store reports a merchandise value of $875,435. The merchandise book value was $907,3

40. The merchandise sales were $1,988,345. What is the shrinkage as a percentage of sales? (Shrinkage is the difference between the book value and the merchandise value from a physical inventory.)
Mathematics
1 answer:
Vlad [161]3 years ago
5 0

Answer:

The shrinkage as a percentage of sales is 1.6%.

Step-by-step explanation:

In order to find the percentage of the sales that can be contributed to shrinkage, we first need to find the amount of shrinkage between the book value ($907,340) and the physical inventory ($875,435).  The difference between these two values is $31,905.  With this value of shrinkage, I then divide by the total amount in sales, which is $1,988,345.  This would give me an overall percentage of 1.6%, which represents the shrinkage as a percentage of sales.  

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