The Inventory Turnover for an Industry Is 6 (Every Two

question 79

Essay

The inventory turnover for an industry is 6 (every two months)but Slow Corp. turns over its inventory 4 times a year (every three months).  If annual sales are $1,000,000 and the interest cost to carry inventory is 12 percent, what is the potential savings in interest expense if the firm achieves the industry for the turnover of its inventory?

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Definitions:

Salesperson's Presentation Mix

A salesperson's presentation mix involves the combination of verbal communication, visual aids, demonstrations, and personal selling techniques used to effectively engage and persuade a potential customer.

Proof

Evidence or argument establishing a fact or the truth of a statement or proposition.

Conviction

In the conviction step of the prospect’s mental buying process, the salesperson should strive to develop a strong belief that the product is best suited to the prospect’s specific needs. It is established when no doubts remain about purchasing the product.

Trial Close

A sales technique where the seller asks a prospective buyer for their opinion or a minor decision regarding the sale, used to gauge interest or objections early.