ADM Summative 1

Increasing the Inventory Turns will Increase the Sales

• True

• False

Doubling the Inventory Turn will double the Interest Cost

• True

• False

Conversion Ratio does not depend upon the category

• True

• False

DPP for a product is always constant

• True

• False

The DPP for a product will normally depend upon the Gross profit, the total quantity sold and the display space

• True

• False

An organization selling higher quantity of the same product will normally be always at an advantage over its competitors over price

• True

• False

You manufacture fabric. The price of the yarn has increased 5 times in the last 10 years. To make your business more competitive what would you do.

• Sell my business

• See if buying a yarn manufacturing unit is feasible

• Buy cheaper quality of the yarn

• None of the above

Calculate the DPP of the follwoing. CP 100. SP 200. Space 2 Sq Ft. Sold 1 per day. (Re.1 /Sq Ft/Per hour)

• 60

• 70

• 80

• 90

Calculate the DPP of the following. Product CP 100 SP 200. Space 1 Sq Ft. Items sold 10 per day.

• 90

• 99

• 100

• 101

Please calculate the DPP for the following Product

Cost Price 100

Selling Price 200

Display Area 10 Sq Foot (Re1 /Sf /Hour)

Quantity sold per day 4

• 25

• 50

• 75

• 100