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16 August, 13:37

Andrews Corp. ended the year carrying $33,836,000 worth of inventory. Had they sold their entire inventory at their current prices, how much more revenue would it have brought to Andrews Corp.?

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  1. 16 August, 14:59
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    Revenue could be of amount $33,836,000

    Explanation:

    As the selling price is not given in the question, only the cost of the inventory is given, So,

    We assume that the Sales quantity is X and the Selling Price per unit be Y

    Then,

    Sales = X * Y ... Equation (1)

    Less : COSG = $33,836,000 ... Equation (2)

    Net Income = 1 - 2

    If the selling price is equal to the cost of the inventory which is $33,836,000. So, the only revenue which is to be added is the amount of $33,836,000.

    Note: It totally depend or grounded on the Sales value.
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