Final Answer:
The correct formula expressing the annual stock turnover rate (T) as a function of the number of shirts sold (S) is option c. T = 2S.
Step-by-step explanation:
The annual stock turnover rate (T) is a financial metric used to assess how many times a company's inventory is sold and replaced over a given period. In this context, the correct formula is option c. T = 2S. This indicates that the stock turnover rate is directly proportional to the number of shirts sold, with a multiplier of 2. The factor of 2 suggests that for every shirt sold, the stock is turned over twice in a year.
To break down the formula further, let's consider a hypothetical scenario where 100 shirts are sold in a year. Using the formula T = 2S, the annual stock turnover rate (T) would be 2 * 100, resulting in a turnover rate of 200. This means that the entire stock of shirts is sold and replaced 200 times during the year.
It's important to note that the other options (a. T = S, b. T = S/2, d. T = S²) do not accurately represent the relationship between the annual stock turnover rate and the number of shirts sold. The correct formula, T = 2S, reflects a straightforward and proportional correlation, emphasizing that for each shirt sold, the stock turnover occurs twice in a given year.