GUTHRIE’S BY MILDRED MONTGOMERY
INVENTORY TURN0VER SALES/AVERAGE VALUE OF INVENTORY
INVENTORY TURNOVER 1990 KITCHEN-4 PHONOGRAPHIC-6 TELEVISION-4 VCR KITCHEN-4.25 PHONOGRAPHIC-6.7 TELEVISION-4.8 VCR-6
SALES PER SQUARE FOOT SALES/SQUARE FEET OF SELLING SPACE
SALES PER SQUARE FOOT 1990 KITCHEN-66.7 PHONOGRAPHIC-37.5 TELEVISION-66.7 VCR KITCHEN-85 PHONOGRAPHIC-40 TELEVISION-75 VCR-150
GROSS-MARGIN RETURN ON INVENTORY INVESTMENT GROSS MARGIN/PRICE*(INVENTORY TURNOVER)
GROSS-MARGIN RETURN ON INVENTORY INVESTMENT 1990 KITCHEN-3 PHONOGRAPHIC-5 TELEVISION-3 VCR KITCHEN-3.25 PHONOGRAPHIC-5.7 TELEVISION-3.8 VCR-5
GROSS-MARGIN RETURN PER SQUARE FOOT GROSS MARGIN/PRICE*(SALES PER SQUARE FEET)
GROSS-MARGIN RETURN PER SQUARE FOOT 1990 KITCHEN PHONOGRAPHIC TELEVISION VCR KITCHEN-84 PHONOGRAPHIC-39 TELEVISION-65 VCR-149
I would recommend that you take the unused 1,200 square feet for VCR and use that for the kitchen line. The kitchen line has increased it’s gross margin return per sq ft by in two years.