- This topic has 1 reply, 2 voices, and was last updated 3 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
A trader has budgeted sales for the coming year of $275. He achieves a constant mark-up of 25%. He plans to reduce his inventory level by $14 over the year.
What will his purchases for the year be?
I am unsure how the answer is 206.
If COGS was calculated to be 220.
COGS= opening + purchases – closing and if I plan on reducing inventory,
then shouldn’t it be:220= purchases – 14?
Would appreciate your help figuring out the correct way to answer this question!
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.