Question: Required: Calculate the ratios as the additional markup or markdown amounts as a percentage of sales. (A more precise measure that would produce similar results
Required: Calculate the ratios as the additional markup or markdown amounts as a percentage of sales. (A more precise measure that would produce similar results would replace sales in the ratio denominator with the original selling price of both sales and unsold inventory.) Based upon what you find, answer the following questions: A. Which of the five regions operations has the most favorable inventory management relative to demand as measured by the additional markup percentage ratio and what is that ratio? (Round your answer to 1 decimal place.)
B. Which of the five regions operations has the least favorable inventory management relative to demand as measured by markdown percentage ratio and what is that ratio? (Round your answer to 1 decimal place.) To view the state inventory management results more clearly, highlight the column "Additional Markup %" in the "Inventory Management by State" column and sort from largest to smallest. You can answer problem 4 below by following the same procedure for the "Markdown %" column. C. Which states operations has the most favorable inventory management relative to demand as measured by additional markup percentage ratio and what is that ratio? (Round your answer to 2 decimal places.)
D. Which states operations has the least favorable inventory management relative to demand as measured by markdown percentage ratio and what is that ratio? (Round your answer to 2 decimal places.)
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