When there is a high inventory turnover, there is an increase in sales because
A) price points are set higher to accommodate for potential sales loss.
B) new merchandise is continually available to customers.
C) the merchandise begins to look shopworn.
D) sales are increased by reducing prices.
E) more money is available to buy new merchandise.

Question

Quizplus · Accepted Answer

Higher inventory turnover increases sales because new merchandise is continually available to customers. New merchandise attracts customers to visit the store more frequently because they know they will be seeing different merchandise each time they visit the store.

When There Is a High Inventory Turnover, There Is an Increase