Question

You are opening a new store and must project in your business plan the amount of inventory shrinkage. You have forecasted $1,200,000 in sales for the first year. Assuming your shrinkage will be 5%, the high end of the national average, calculate the projected annual shrinkage for your business plan.

Answer 1

nvm ignore this

Explanation:

Answer 2

$60,000

Explanation:

1st year forecasted sales = $1,200,000

Shrinkage = 5% of the sales.

Annual shrinkage = 5% of 1,200,000

= 0.05*1,200,000

Annual shrinkage of the business = $60,000

Hope this will helpful.

Thank you.