Two distributors each start out selling a single brand of engine and both have annual sales = $100,0

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Two distributors each start out selling a single brand of engine and both have annual sales = $100,000 after 1 year. Over the next 2 years, both grow their annual sales = $1M. The first grows sales for the same single brand of engine. The second adds 9 other brands of motors and achieves $100,000 in sales for each brand.

Q: Explain once they have reached $1,000,000 in sales, which of the two distributors would maintain higher inventories?

Q: By growing, the annual turns for the first distributor (explain and circle one)

Increase         Remain unchanged or Decrease

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