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Two industrial distributors each start out selling a single brand of motor and both achieve annual sales of $100,000 after one year

Civil Engineering

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Two industrial distributors each start out selling a single brand of motor and both achieve annual sales of $100,000 after one year. Over the next two years, both grow their annual sales to $1,000,000. The first distributor grows sales for the same single brand of motor. The second distributor adds nine other brands of motors and achieves $100,000 in sales for each brand.

a)     Once they have reached $1,000,000 in sales, which of the two distributors would you expect to maintain higher inventories?

Explain:

 

b)     By growing, the annual turns for the first distributor

Circle one: Increase                           Remain unchanged               Decrease

Explain (max 50 words).