{Note: use the formula (GMROI = Gross Margin $ / Average Inventory at Cost) to solve this}

10. For the first quarter (Feb-Apr), the sportswear department had a cumulative markup of 60% and the following results. Calculate GMROI for the first quarter. Retail Sales Beginning Inventory Gross Margin $ February $12,000 $48,000 $6,000 March $10,000 $45,000 $4,500 April $9,000 $40,000 $4,000 May $47,000