Hattie Cao operates Peachy Keen and sells her products through catalogue orders. Cao produces and sells seven kinds of peach pies,three kinds of peach cakes,two kinds of peach cookies,and a peach salsa. She normally keeps 250 jars of salsa in stock,but she noticed today that she has more than 500 bottles in her inventory. Cao decided to reduce her inventory by lowering her price. Her plan to get rid of excessive inventory was so successful that she found herself sold out in just a couple of days. Which of the following did Cao experience?
A)a loss of amortization
B)negative sales
C)a stockout
D)an aggregated turnover

Question

Hattie Cao operates Peachy Keen and sells her products through catalogue orders. Cao produces and sells seven kinds of peach pies,three kinds of peach cakes,two kinds of peach cookies,and a peach salsa. She normally keeps 250 jars of salsa in stock,but she noticed today that she has more than 500 bottles in her inventory. Cao decided to reduce her inventory by lowering her price. Her plan to get rid of excessive inventory was so successful that she found herself sold out in just a couple of days. Which of the following did Cao experience?
A)a loss of amortization  
B)negative sales  
C)a stockout  
D)an aggregated turnover

Quizplus · Accepted Answer

Cao experienced a stockout, which is when there is no inventory available to meet customer demand. This occurred when she sold out of her excessive inventory after lowering her price. The other choices do not apply to the situation described.

Hattie Cao Operates Peachy Keen and Sells Her Products Through