Miss Arlene's Digital World rents out DVDS. The manager observed that the weekly total number of rentals varies directly with the total inventory and varies inversely with the cost of each rental. Last week's total rental is 300 DVDS when its inventory was 960 and the cost per rental was Php 25.00. If its inventory does not change, what would be the effect on the weekly total number rentals if the cost per rental will be increased to Php 30.00?

Miss Arlene's Digital World rents out DVDS. The manager observed that the weekly total number of rentals varies directly with the total inventory and varies inversely with the cost of each rental. Last week's total rental is 300 DVDS when its inventory was 960 and the cost per rental was Php 25.00. If its inventory does not change, what would be the effect on the weekly total number rentals if the cost per rental will be increased to Php 30.00?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.1AP

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