Hi Barbara!
You are not the only student who finds this subject challenging --believe me!
I worked it out by first finding the value of sales, given the mark-up of 70%. Subtract the 70% from a 100% and then multiply the difference by the sales figure (300,000 x .30 = 90,000). Next, compute the average inventory (80,000 + 84,000) /2 = 82,000. The final step is to divide 90,000 by 82,000 = 1.097 or 1.1
I hope that this helps; success in your studies!
Michael Savich
Instructor