Answer and Explanation:
The computation is shown below:
a. The inventory turnover is
= Cost of Goods Sold ÷ Average Inventory
= $351,050 ÷ ($170,000 + $125,000) ÷ 2
= $351,050 ÷ $147,500
= 2.38 times
b. Now days in inventory is
= 365 ÷ inventory turnover ratio
= 365 ÷ 2.38 times
= 153.36 days
Answer:
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Answer:
High-involvement purchase situation.
Explanation:
As part of the consumer decision process, the process consumers go through in making a purchase can differ between low involvement and high involvement purchase decision.
Low involment:
-need recognition
-evaluation of alternatives
-purchase decision
-postpurchase evaluation
High involment:
-need recognition
-information search. advertising helps the search process by providing information and making it easy to find. This stage can be casual or formal.
-evaluation of alternatives
-purchase decision
-postpurchase evaluation
