Question: To put it in simple terms, the concept about turning overinventoryis to use the same funds over and over again. For example, I buy 10
To put it in simple terms, the concept about turning overinventoryis to use the same funds over and over again. For example, I buy 10 items each week and pay $50.00 for each item. My total investmentis $500.00. I sell the 10 items within the weekat aprice of $110.00 each.Total revenue is $1,100.00. Now, I recovered my initial inventory purchaseand covered my operation costs and made a little profit. Therecovered inventory costs of $500is used to pay for the new inventorycoming in this week.The end resultis tokeep using the same $500 dollars to purchase new inventory each and every week. Other examples?
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