Assume that Charmin and Barker are two retailers selling different goods.Charmin reports a days to sell ratio of 6 days and Barker reports a days to sell ratio of 64 days.What types of merchandise are Charmin and Barker likely to sell,given their measures of days to sell?
A)Charmin sells clothing and Barker sells wine.
B)Charmin sells consumer electronics and Barker sells gasoline.
C)Charmin sells footwear and Barker sells consumer electronics.
D)Charmin sells groceries and Barker sells autos.

Question

Quizplus · Accepted Answer

The days to sell equals 365 divided by the inventory turnover ratio,where the inventory turnover ratio = cost of goods sold ÷ average inventory.The days to sell ratio indicates on average how long it takes to sell inventory on hand.Given Charmins' relatively short days to sell,it is likely to sell either products with a short shelf life,lower price,or both (for example,groceries).Given Barkers' relatively long days to sell,the company is likely sell either products with a long shelf life,higher price,or both (for example,autos).

Assume That Charmin and Barker Are Two Retailers Selling Different