Selling 9th Edition by Stephen Castleberry,John Tanner

Exercise 1

Assume that ACME Tools buys 100 portable generators for $425 each and then spends $1,000 in expenses for advertising, salesperson commission, and store rent. The generators sell for $695 each. ACME keeps 100 generators in stock at all times. Average annual sales are 500 generators. Calculate the following:
a. Profit margin
b. Inventory turnover