Question

In 2014, Celgene had revenue of $7,670 million, cost of goods sold of $276 million, and inventory of $393.1. What was their weeks-of-supply?

a) 3.5 weeks
b) 5 weeks
c) 10 weeks
d) 15 weeks

Answer 1

To calculate the weeks-of-supply, divide the inventory by the cost of goods sold per week. The correct answer is not provided in the options.

Step-by-step explanation:

To calculate the weeks-of-supply, we need to divide the inventory by the cost of goods sold per week. Since we are given the cost of goods sold for the year, we need to divide it by the number of weeks in a year.

The cost of goods sold per week is calculated as: Cost of Goods Sold / Number of Weeks in a Year

In this case, the cost of goods sold per week is $276 million / 52 weeks = $5.3 million per week.

Now, to determine the weeks-of-supply, we divide the inventory by the cost of goods sold per week:

Weeks-of-Supply = Inventory / Cost of Goods Sold per Week = $393.1 million / $5.3 million per week = approximately 74 weeks.

Therefore, the correct answer is not provided in the options given. The weeks-of-supply for Celgene in 2014 was approximately 74 weeks.