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. According to the textbook,what should Cao do with her excess inventory?

Question

Quizplus · Accepted Answer

Cutting prices on the excess inventory (salsa) would help increase sales and clear out the inventory. This would also prevent wastage and potential monetary loss for the business. Donating or throwing away excess inventory would not be the most efficient use of company resources. Sending out excess inventory as free samples may not be the best approach as it would not guarantee an increase in sales, and may lead to further expenses for the business.

Hattie Cao Operates Peachy Keen and Sells Her Products Through