$2$ According to the strategic profit model, a decrease in purchase costs $($all else equal$)$ will result in which of the following?

A decrease in profit margins and an increase in asset turnover

A decrease in profit margins and a decrease in asset turnover

An increase in profit margins and a decrease in asset turnover

An increase in profit margins and an increase in asset turnover

All else equal, greater inventories result in which of the following?

Greater profits

Greater accounts receivable

Greater current assets

Greater fixed assets

Which of the following will result if a firm orders a given product in quantities lower than the EOQ?

Its annual inventory holding costs will be higher than in the optimum.

Its annual order placement costs will be lower than in the optimum.

Customer demand will be lower than in the optimum.

Total logistics costs will be higher than in the optimum.