Which of the following scenarios is consistent with an increasing cost of goods sold to sales percentage and increasing inventory turnover?
a. Firm raises prices to increase its gross margin but inventory sells more slowly.
b. Weak economic conditions lead to reduced demand for a firm's products, necessitating price reductions to move goods.
c. Strong economic conditions lead to increased demand for a firm's products, allowing price increases.
d. Firm shifts its product mix toward lower margin, faster moving products.
D
You might also like to view...
Inventory obsolescence procedures Identify and describe at least four procedures the audit team may perform in order to determine potential obsolescence of items in the inventory balances
If Ashley Company accounts for the investment as a minority, active investment and uses the equity method to account for the investment, Ashley will recognize what amount of 2010 income from the investment?
a. $4,000 b. $10,000 c. $25,000 d. $15,000
When engaged in marginal listening, Andrew, the salesperson, refrains from evaluating the message and tries to see the prospects' point of view.
Answer the following statement true (T) or false (F)
What will happen to the breakeven point (in units) if Mosaic can reduce fixed costs by $22,000? (Round your answer up to the nearest whole unit.)
Mosaic Tile Company has estimated the following amounts for its next fiscal year:
A) The breakeven point will decrease by 917 units.
B) The breakeven point will decrease by 1100 units.
C) The breakeven point will increase by 1100 units.
D) The breakeven point will increase by 500 units.