Regarding markups and turnover:
A) high markups usually lead to high profits.
B) speeding turnover usually decreases profits.
C) items sold at low markups (e.g., 20 percent) cannot be profitable.
D) depending on the industry-a stockturn rate of 1 or 2 may be quite profitable.
E) All of these alternatives are correct.

Question

Quizplus · Accepted Answer

Depending on the industry, a stockturn rate of 1 or 2 may be quite profitable. This means that even if a business is turning over its inventory at a slower rate, it can still make a profit depending on the nature of the industry. The other choices are incorrect - high markups do not always lead to high profits, speeding turnover can actually increase profits, and items sold at low markups can still be profitable depending on other factors such as cost of goods sold.

Regarding Markups and Turnover