Marcus Teen Shop had a fire. The entire inventory was lost. Jenna is putting together...
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Marcus Teen Shop had a fire. The entire inventory was lost. Jenna is putting together a claim for the insurance company. Sales this year were $2,000,000 up until the fire. Last year's sales were $1,000,000. Jenna marks her inventory up 100% (ie she sells her merchandise at 200% of her cost). The inventory at the beginning of the year was $400,000 (at cost). Jenna owed suppliers $300,000 last year. The company had purchased $800,000 of dresses this year (at cost) up until the date of the fire. How much can Jenna claim as lost during the fire? A. $ 340,000 B. $ 240,000 C. $ 440,000 D. $ 640,000 E. $200,000
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