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QUESTION 2 Inventory Management Metrics Points cut of 10.00 Flag Large retailers like The Home Depot and Wal-Mart typically use gross margin ratio (grass
QUESTION 2 Inventory Management Metrics Points cut of 10.00 Flag Large retailers like The Home Depot and Wal-Mart typically use gross margin ratio (grass margin sales), inventory turnover (sometimes referred to as inventoryturns), and grass margin return on investment (GMROI) to evaluate how well inventory has been managed. The goal is to maximize profits while minimizing the investment in inventory. Below are date for four scenarios, a base scenario 1) fallowed by three modifications Fs 2, 3, & 4) to the base scenario. Scenario I Scenario 2 Scenario 3 Scenario 4 Seles Cost of goods sold Gross profit Averege inventory $10,000 8,000 32,000 s 7,000 520,000 16,000 54, ooo s 7,000 313,000 8,000 55,000 s 7,000 $10,000 58,000 32,000 $6,000 For each scenario calculate the gross margin percent, the inventory turnover, and GMROI. Round your answers to one decimal place. (Example far % answers gg.g%) Scenario I Gross margin nventory Turnover GMROI Scenario 2 Scenario 3 Scenario 4
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