Calculating Total Cost of Inventory for a Chevrolet Dealership

What is the total cost of the entire inventory for a local Chevrolet dealership?

Final Answer:

The total cost of the entire inventory is $345,000, which is obtained by multiplying the quantity of each vehicle type by its unit cost and summing these values, reflecting the dealership's investment in its current stock. This information is valuable for financial analysis and managing inventory levels.

Explanation:

The total cost of the inventory is calculated by multiplying the quantity of each type of vehicle by its respective unit cost and then summing these values.

For Vans: 2 * $17,000 = $34,000

For Trucks: 5 * $16,000 = $80,000

For 2-door sedans: 1 * $11,000 = $11,000

For 4-door sedans: 6 * $15,000 = $90,000

For Sports cars: 2 * $27,000 = $54,000

For SUVs: 7 * $26,000 = $182,000

Now, adding these individual costs together: $34,000 + $80,000 + $11,000 + $90,000 + $54,000 + $182,000 = $345,000.

This means that the total cost of the entire inventory is $345,000.