Question: Selected data from Kemp Corporation are reproduced below: Required: a. For Year 4, compute the following ratios: (1) Inventory/Sales. (2) Inventory/Income contribution. b. Compute the

Selected data from Kemp Corporation are reproduced below:

Required:

a. For Year 4, compute the following ratios:
(1) Inventory/Sales.
(2) Inventory/Income contribution.

b. Compute the percentage of each product line’s income contribution to the total for each year. Interpret this evidence.

c. Comment on the desirability of an investment in each product line.

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