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Question 133

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Use the following to answer questions:
Scenario 12-2. Jeremy's Jewels is a retail store that specializes in medium-quality, medium-priced jewelry. It is located in a mall in downtown Yosako, Kansas. Jeremy is concerned about his inventory costs. He has several questions concerning purchasing, choosing suppliers, and how much inventory he actually needs. Lately, his cash flow has been severely strained due to the fact too much cash is being tied up in inventory. Jeremy is currently the only employee of his small business.
-In Scenario 12-2 above, if Jeremy uses the Pareto rule, he will


A) Remember that 80 percent of his revenues will come from 20 percent of his inventory
B) Increase his sales by lowering price
C) Increase consumer demand by lowering price
D) Remember that 80 percent of his expenses come from 20 percent of his expense items

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