You are the owner and operator of an auto parts and accessories store. Working with your accountant you are trying to determine which merchandise categories are most profitable for your retail store and if any of the categories should be eliminated from your merchandise mix.

Replacement parts such as batteries, windshield wipers, headlights

Fluids and Chemicals such as transmission fluid and motor oil

Exterior Accessories such as deflectors, door handles, truck tools boxes

Interior Accessories such as floor mats, remote starter, custom seat covers

Please answer the following questions based on the question number in the table.

As for the other questions, remember that when making any comparison between stores, departments, or categories, the calculations must be based on one and only one method. Therefore, the table asks you to calculate average inventory @ retail and to use that valuation in your comparisons.

	Replacement Parts	Fluid and Chemicals	Exterior Accessories	Interior Accessories
Annual Sales	$890,990	$425,000	$208,880	$322,123
Cost of Goods Sold (CGS% x Sales)	$365, 306	$318,750	$142,028	$125,638
Gross Margin ($)	$526,774	$106,250	$66,842	$196,495
Average Inventory @ Cost	$170,000	$90,660	$89,542	$123,963
GM %	(3)	(4)	(5)	(6)
CGS % (100% - GM%)	(7)	(8)	(9)	(10)
Average Inventory @ Retail	(11)	(12)	(13)	(14)
Inventory Turnover	(15)	(16)	(17)	(18)
GMROI*	(19)	(20)	(21)	(22)

GM% for Replacement Parts:

GM% for Fluid and Chemicals:

GM% for Exterior Accessories:

GM% for Interior Accessories:

CGS% for Replacement Parts:

CGS% for Fluids and Chemicals:

CGS% for Exterior Accessories:

CGS% for Interior Accessories:

Average Inventory @ Retail for Replacement Parts:

Average Inventory @ Retail for Fluid and Chemicals:

Average Inventory @ Retail for Exterior Accessories:

Average Inventory @ Retail for Interior Accessories:

Inventory Turnover for Replacement Parts:

Inventory Turnover for Fluid and Chemical:

Inventory Turnover for Exterior Accessories:

Inventory Turnover for Interior Accessories:

GMROI for Replacement Parts:

GMROI for Fluid and Chemicals:

GMROI for Exterior Accessories:

GMROI for Interior Accessories: