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Olivia Inc. presented the following data:
Merchandise Inventory on January 1, 2020 - $ 550,000
Purchases from January 1, 2020 to December 31, 2020 - 2,250,000
Sales from January 1, 2020 to December 31, 2020 - 3,000,000
Problem 1: Physical Inventory determined that ending inventory of $600,000 was in the warehouse on December 31, 2020. Olivia Inc.'s gross profit on sales has remained constant at 30%. Olivia is suspecting that some of the inventory may have been taken by some new employees. What is the estimated cost of missing inventory on December 31, 2020?
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