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ArbitrLikvidat [17]
3 years ago
12

A small pizza restaurant, founded and owned by the Martinelli sisters, would be expected to have which of the following? a.Low i

nventory turnover and high gross margin b.Low accounts receivable turnover and low gross margin c.High price-earnings ratio d.High inventory turnover and low gross margin e.All of these.
Business
1 answer:
Marrrta [24]3 years ago
8 0

Answer:

d.High inventory turnover and low gross margin

Explanation:

Inventory Turnover Ratio is ratio of 'cost of goods sold' to 'average inventory level'. Gross margin is the difference between net sales revenue & c.o.g.s

A small pizza restaurant, by Martinelli sisters, would be expected to have :

  • High Inventory Turnover : It reflects that inventory is quickly converted into liquid cash, & there is less average inventory level management. Both these aspects are applicable to the pizza restaurant
  • Low Gross Margin : Being a small restaurant, it is less likely to have competitive, high price charge advantage. So, the gross margins are expected to be low.
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Answer:

The net realizable value of Accounts Receivable = 1,985,538

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Would you expect holding cost to go down with increases in maximum capacity?
xxTIMURxx [149]

Answer: The answer is given below

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