Suppose you could invest $100,000 in inventory,which you expect to be able to sell at $140,000.If you expect your total selling costs to be $20,000,your expected profit rate would be ______ percent.

Question

Quizplus · Accepted Answer

The expected profit is $140,000 (sales) - $100,000 (investment) - $20,000 (selling costs) = $20,000. The profit rate is ($20,000 profit / $100,000 investment) * 100% = 20%.

Suppose You Could Invest $100,000 in Inventory,which You Expect to Be