If a Retailer's Annual Stockturn Rate Shifted to 20 from 5

question 116

Multiple Choice

If a retailer's annual stockturn rate shifted to 20 from 5, then selling products costing $100,000 would require ______________ rather than $20,000 in working capital to carry the needed inventory.

• A) $10,000
• B) $80,000
• C) $8,000
• D) $500
• E) $5,000

---

Definitions:

Marketing Efforts

Activities undertaken by a company to promote and sell its products or services.

Direct Forecast

A method where future values are estimated based on a direct analysis of past and present data, without involving intermediate steps.

Sensitivity Analysis

A method employed to ascertain the effects of varying levels of an independent variable on a specific dependent variable, given a certain set of presuppositions.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, indicating the sensitivity of demand to price changes.