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Step2247 [10]
3 years ago
9

Barron Industries has the following information: Sales Revenue $ 645,000 Ending inventory 69,000 Cost of Goods Sold 490,000 Begi

nning inventory 59,000 What is Barron’s number of days to sell? (Round intermediate calculations to 2 decimal places. Assume 365 days a year.)
Business
1 answer:
Natasha_Volkova [10]3 years ago
6 0

Answer:

47.67 days

Explanation:

The computation of the number of days to sell is shown below:

Number of days to sell is

= Average inventory ÷ Cost of goods sold × Total number of days in a year

Where

Annual inventory is

= (Beginning inventory + ending inventory) ÷ 2

= ($59,000 + $69,000) ÷ 2

= $64,000

So the number of days to sell is

= $64,000 ÷ $490,000 × 365 days

= 47.67 days

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Answer:

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Explanation:

<em>First, we add the three cost component:</em>

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<em>Then, using the WIP beginning and ending figures, we solve for cost of goods manufactured</em>

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Answer:

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A business with a large amount of fixed cost relative to variable is said to have  a high operating leverage . For such business, operating income would  be more volatile because the operating income would not increase in commensurate proportion as sales revenue.

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Operating leverage is calculated as

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