Question

Your boss indicates that the store’s stock/sales ratio is 5:1. This means that _____ should be invested in inventory for every $1 of forecasted sales.

Answer 1

5 stocks

Step-by-step explanation:

This means that 5 stocks should be invested in inventory for every $1 of forecasted sales. That is because an x:y ratio means that for every y amount of something there needs to be an x amount as well. The same applies for the opposite, if there is an x amount of something then a y amount should exist. Therefore, in this scenario for every $1 of sales 5 stocks need to exist.