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SSC Financial and Cost Accounting P-1 QUESTION #6119
Question 1

Data: Average inventory $15,000; Rate of inventory turnover 8 times; Mark-up 25%. What is the business's revenue (sales)?

  • $144,000
  • $150,000✔️
  • $160,000
  • $210,000
Correct Answer Explanation

Option B ($150,000) is correct.

COGS = 8 × $15,000 = $120,000

Mark-up 25%: Revenue = $120,000 × 1.25 = $150,000