Question

Andrews Corp. ended the year carrying $153,576,000 worth of inventory. Had they sold their entire inventory at their current prices, how much more revenue would it have brought to Andrews Corp.?

Answer 1

$153,576,000

Step-by-step explanation:

The reason is that the company has sold maximum number of units that it can in the year. If it desires to sell all of its stock then it will have to decrease the cost of the product to increase the demand of the product. The least level of cost that the company can charge will be its finished goods recorded value which is the price at which the company breakevens.

Hence the additional sales would be $153,576,000 which is the carrying worth of inventory.