On average, Max's Floors has $50,000 worth of area rugs in stock at any given time. Last year, area rug sales were $550,000. What is the inventory turn for the area rug department at Max's Floors?
A) annually
B) $550,000
C) $50,000
D) 11
E) 9%

Question

Quizplus · Accepted Answer

The inventory turn is calculated by dividing the cost of goods sold (sales) by the average inventory. Here, $550,000 / $50,000 = 11.

On Average, Max's Floors Has $50,000 Worth of Area Rugs