Erica has a baby clothing shop called The Baby Store. Erica has worked in her shop for
Question:
Erica has a baby clothing shop called The Baby Store. Erica has worked in her shop for several months. Her sales have doubled each month. Erica has decided to hire Wendy, a sales associate, since she needs to be away from the shop on a regular basis. After several months, Erica noticed that her purchases increased but sales did not go up in the same proportion and inventory is low. She is finding her net income is lower than previous months. State the cause of her decreased income and determine the actions that should be taken.
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