Business of Retail- Chapter 4 - Question Practice B

Front

If a business’s revenue is $1,150 and its cost of goods sold (COGS) is $734, what is the business’s gross profit/loss?

Back

$416

Front

A business’ gross profit is $200 and its revenues are $1,000. What is its profit margin percentage?

Back

20%

Front

A boutique bakery decides to price its cupcakes at $4.99 instead of $5.00. What pricing strategy are they using?

Back

Psychological Pricing

Front

Which of the following is calculated as revenue minus the cost of goods sold (COGS)?
Options: Gross Margin, Gross Profit, Net Profit, Operating Expense

Back

Gross Profit

Front

Lisa owns a coffee shop where she sells 50 lattes at $4.50 each. The cost of making each latte is $2.00. What is Lisa’s gross profit?

Back

$225

Front

In retail, which of the following is an example of cost of goods sold (COGS)?
Options: Monthly rent for the storefront, Employee wages, Ingredients for baked goods, Advertising costs

Back

Ingredients for baked goods

Front

A store displays a promotion: “Buy one, get one 50% off.” This is an example of which pricing strategy?

Back

Promotional Pricing

Front

A store sells a gaming console and includes a free controller in the deal. This pricing strategy is best categorized as:

Back

Bundle Pricing

Front

What does the “M” in MSRP stand for?

Back

Manufacturer’s

Front

Brian owns a gift shop. When setting prices, he considers the cost of goods, his competitors' prices, and customer preferences. This is an example of:

Back

Strategic Pricing