With respect to markups and turnover, a marketing manager should be aware that:
A) a low stockturn rate increases inventory carrying costs.
B) depending on the industry, a stockturn rate of 2 or 3 may be quite profitable.
C) high markups don't always mean big profits.
D) speeding turnover often increases profits because the firm's operating costs are a function of time and the volume of goods sold.
E) All of the above are true statements.

Question

Quizplus · Accepted Answer

All of the statements are true. A low stockturn rate means that inventory is sitting in the warehouse for a long time, resulting in higher inventory carrying costs. However, depending on the industry, a stockturn rate of 2 or 3 may be considered profitable. High markups alone do not guarantee big profits, as the volume of sales can also affect the overall profitability. Speeding turnover can increase profits since operating costs are incurred over time and the volume of goods sold.

With Respect to Markups and Turnover, a Marketing Manager Should