If a company keeps an average of 100 finished bicycles in inventory each month, and it sold 1000 bicycles this year, then it turned its inventory ten times.

Name: If a company keeps an average of 100 finished bicycles in inventory each month, and it sold 1000 bicycles this year, then it turned its inventory ten times.
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Question

Quizplus · Accepted Answer

Inventory turnover is calculated by dividing the total sales by the average inventory level. In this case, 1000 bicycles sold / 100 bicycles in inventory = 10 turns per year.

If a Company Keeps an Average of 100 Finished Bicycles