Question

In December, The Corner Coffee Spot had an average inventory of $123, 456 and retail sales of $196, 450. Find the stock

turnover at retail. Round to the nearest tenth.

2.1
1.9
1.6
1.3

Answer 1

1.6

Explanation:

The stock turnover at retail is a measure of how many times a business sells its average inventory during a period of time. We can calculate the stock turnover by dividing the retail sales by the average inventory.

Stock turnover = Retail Sales / Average Inventory

Given the values :

• Average Inventory = $123,456
• Retail Sales = $196,450

Substituting these values

Stock turnover at retail = 196,450 / 123,456 = 1.6 (rounded to the nearest tenth)