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Williamson Trucking Has Current Sales of $10,000 and a Cost

Question 49

Multiple Choice

Williamson Trucking has current sales of $10,000 and a cost of goods sold of $4,300. Williamson has projected sales to increase 50% and expects the new cost ratio to decrease by 2% due to increased efficiency. Assuming that Williamson wants to maintain an inventory turnover of 5.0, calculate their projected level of inventory. (round to the nearest $)


A) $1,230
B) $1,920
C) $2,180
D) $2,340

Correct Answer:

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