A retailer with an annual inventory turn goal of 7, average inventory of $300,000, and annual sales of $2,000,000 is meeting its goals.

Name: A retailer with an annual inventory turn goal of 7, average inventory of $300,000, and annual sales of $2,000,000 is meeting its goals.
Brand: Quizplus
Rating: 4.7 (29 reviews)

Question

Quizplus · Accepted Answer

The inventory turnover is calculated as annual sales divided by average inventory. Here, $2,000,000 / $300,000 = 6.67, which is less than the goal of 7.

A Retailer with an Annual Inventory Turn Goal of 7