Business of Retail - Unit 4

Which of the following refers to the total amount of money that a retailer brings in? (4.1)

• Profit

• Revenue

• Cost of Goods Sold

• Operating costs

Which of the following refers to the amount of money that a retailer makes after accounting for expenses? (4.1)

• Profit

• Revenue

• Cost of Goods Sold

• Operation costs

Which of the following refers to the difference between revenue and cost of goods sold? (4.1)

• Net profit

• Gross profit

• Profit margin

• Profit margin percentage

Which of the following refers to the difference between revenue and all expenses, including the cost of goods sold and operating expenses? (4.1)

• Net profit

• Gross profit

• Profit margin

• Profit margin percentage

What's the term for reducing the price of an item in order to encourage sales? (4.1)

• Net profit

• Margin

• Markup

• Markdown

If a business' revenue is $1,150 and its cost of goods sold (COGS) is $734, what is the business' gross profit? (4.1)

• $1884

• $516

• $416

• There's not enough information to calculate this.

If a business' gross profit is $100 and its revenue is $500, what is the business' profit margin percentage? (4.1)

• 20%

• 100%

• 25%

• There's not enough information to calculate this.

Carla has a small phone-accessory business. She buys accessories from manufactures and resells them to her customer. Which of the following are NOT operating expenses for Carla? (4.2)

• Website hosting fees

• Transportation costs

• The costs of the phone accessories that she buys and resells

• Credit card processing fees

Using the manufacturer's suggested retail price is called:

(4.2)

• Bundle pricing

• Keystone pricing

• Psychological pricing

• Vendor pricing

Selling multiple products and services together at a lower retail price than if all items were purchased individually is called:

(4.2)

• Bundle pricing

• Keystone pricing

• Psychological pricing

• Vendor pricing