QUESTION:

DATA FOR QUESTION:

43 5. Explain to management what type of factors influence the gross margin return on inventory investment. 44 Included in your explanation, please included at least one outside reference to support your comments. 45 Make sure you are providing detailed explanation, which cannot be completed with a one or two sentence response. 46 Type your response into the text box below: 1 Part 2 3 Below are data for four scenarios. Scenario 1 is the base scenario and the other 3 scenarios are modifications to the base scenario. 6 Sales 7 Cost of Goods Sold 8 Gross Profit Scenario 1 Scenario 2 Scenario 3 Scenario 4 $10,000 $20,000 $10,000 $10,000 8.000 10.000 6,000 8,000 $2,000 $10,000 $4,000 $2,000 $ 5,000 $5,000 $ 5.000 $ 4.000 10 Average Inventory 11 43 5. Explain to management what type of factors influence the gross margin return on inventory investment. 44 Included in your explanation, please included at least one outside reference to support your comments. 45 Make sure you are providing detailed explanation, which cannot be completed with a one or two sentence response. 46 Type your response into the text box below: 1 Part 2 3 Below are data for four scenarios. Scenario 1 is the base scenario and the other 3 scenarios are modifications to the base scenario. 6 Sales 7 Cost of Goods Sold 8 Gross Profit Scenario 1 Scenario 2 Scenario 3 Scenario 4 $10,000 $20,000 $10,000 $10,000 8.000 10.000 6,000 8,000 $2,000 $10,000 $4,000 $2,000 $ 5,000 $5,000 $ 5.000 $ 4.000 10 Average Inventory 11