The Retailer is selling the merchandise for more than it costs the Retailer to acquire it, then the GMROI Ratio would be ……………………
A)Higher than 1
B)Equal to 1
C)Less than 1
D)Equal to 3.2

Question

Quizplus · Accepted Answer

The Gross Margin Return on Investment (GMROI) ratio measures the profit a company makes for every dollar invested in inventory. If a retailer sells merchandise for more than it costs to acquire, the GMROI would be higher than 1, indicating a profit above the cost of the inventory.

The Retailer Is Selling the Merchandise for More Than It