Hello Expert,

Can I get help with this home work.

Thank you

Exercise

Below are data for four scenarios. Scenario 1 is the base scenario and the other 3 scenarios are modifications to the base scenario.

Scenario 1 Scenario 2 Scenario 3 Scenario 4

Sales $10,000 $20,000 $12,000 $10,000

COGS 8,000 10,000 6,000 8,000

Gross Profit $2,000 $10,000 $6,000 $2,000

Average $6,000 $6,000 $6,000 $5,000

Inventory

Required: Answer the questions below each question and use cell references for calculations.

1. Compute the gross margin percent for each scenario.

Scenario 1 Scenario 2 Scenario 3 Scenario 4

Gross Margin Percent

2. Compute the inventory turnover for each scenario.

Scenario 1 Scenario 2 Scenario 3 Scenario 4

Inventory

Turnover

3. Compute the gross margin return on inventory investment percent for each scenario.

Scenario 1 Scenario 2 Scenario 3 Scenario 4

GMROI

4. For Scenarios 2 through 4, explain what change occurred relative to Scenario 1 to cause the

gross margin return on inventory (GMROI) to change. You need to specifically discuss each scenario change separately in comparison to scenario 1.

Type your response below:

5. Explain to management what type of factors influence the gross margin return on inventory investment.

Included in your explanation, please included at least one outside reference to support your comments.

Make sure you are providing detailed explanation, which cannot be completed with a one or two sentence response.

Type your response below: