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Answer to Question #82866 in Microeconomics for billy
Question #82866
Assume a consumer with the utility function
U = U(X, Y) = (X + 2)(Y + 1) M = 95, Px= 10, and Py= 5
Set up the consumers’ budget constraint
U = U(X, Y) = (X + 2)(Y + 1) M = 95, Px= 10, and Py= 5
Set up the consumers’ budget constraint
Expert's answer
The stock turnover is calculated as
Stock turnover=(Cost of sales)/(Average stock held)=(570,000)/(124,250)=4.59 times
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