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JAMB Commerce 2013 Paper

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Question : 19

Total: 49

The rate of turnover of a firm in a given year is 5 times while the average stock is #12,500. what is the turnover of the firm?

#24,000
#46,500
#62,500
#65,000

Solution:

Concept:

Stock turnover rate shows how many times the average stock is sold or used within a year.

Explanation:

Use the formula: Rate of turnover

= \frac{\text{Turnover}}{\text{Average stock}}

Given: Rate

= 5

times and Average stock

= \#12{,}500

.

So, Turnover

= \text{Rate} \times \text{Average stock}

Turnover

= 5 \times \#12{,}500

Turnover

= \#62{,}500

Answer:

\#62{,}500

Option C.

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