Problem
1. The fine jewelry department in a department store has the same GMROI as the small appliances department, even though characteristics of the merchandise are quite different. Explain this situation.
2. Calculate the GMROI and inventory turnover given annual sales of $20,000, average inventory (at cost) of $4,000, and a gross margin of 45 percent. As the athletic shoe buyer for Sports Authority, how would you go about forecasting sales for a new Nike running shoe?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.