Question

Suppose that a movie theater snack bar turns over its inventory of candy 3.3 times per month. (Round your answer to 2 decimal places.) If the snack bar has an average of 340 boxes of candy in inventory, what is its average daily sales rate for candy

Answer 1

The average daily sales rate for candy is 37.4.

Explanation:

We know that,

`\text{Inventory turnover }= \frac{\text{Total sale}}{\text{Average inventories}}`

`\implies \text{Total sale}=\text{Inventory turnover }* \text{Average inventories}`

Given,

Inventory turnover of candies = 3.3,

Average inventories = 340

So, sale of candies = 3.3 × 340 = 1122

Now,

`\text{Average daily sales rate}=\frac{\text{total sale}}{\text{Number of days}}`

Since, 1 month = 30 days ( approx ),

Hence, the average daily sales rate for candy =
`(1122)/(30)`=37.4