Pristine Holdings operates two types of retail stores, branded as BlueStores and GreenStores. Selected ratios for these stores are given below:

Ratio	BlueStores	GreenStores
Average settlement period for accounts receivable	59 days	19 days
Average settlement period for accounts payable	45 days	45 days
Gross profit percentage	40%	20%
Profit percentage	8%	8%
Inventory turnover period	60 days	20 days

One brand caters for the upscale market while the other serves the price competitive mass market.

Required:

1. Discuss which of these brands likely caters for the upscale market and which one is price competitive. Justify your views.

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2. A manager in Pristine Holdings mentions that the organisation pays close attention to the inventory levels in its retail chains. Pristine Holdings applies the ABC system whereby selective levels of control are applied to different categories of inventory. Discuss these levels of control and indicate which of these categories are likely to be relevant to BlueStores and GreenStores, respectively.