Decision about Pricing Custom Gems, Inc., a retail jewelry store, had gross profits of $1,320,000 on sales of $2,400,000 in 20X3. Average inventory was $1,080,000. 1. Compute inventory turnover. 2. Jerry Siegl, owner of Custom Gems, is considering whether to become a "discount" jeweler. For example, Jerry believes that a cut of 20% in average selling prices would increase inventory turnover in 20X4 to 1.5 times per year. Beginning and ending inventory would be unchanged. Suppose Jerry's beliefs are valid. What would his new gross profit percentage be? Would the total gross profit in 20X4 have improved? Show computations.