38845112
Description
Flashcards by JOHNA THARP, updated 11 months ago
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Created by JOHNA THARP
11 months ago
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| Question | Answer |
| Breakeven point (BE) | Point at which seller has covered all expenses and costs and has made no profit or suffered a loss. |
| Contribution margin (CM) | Difference between selling price and variable cost. |
| Cost | Price retailers pay to manufacturer or supplier to bring merchandise into store. |
| Dollar markdown | Original selling price less the reduction to price. Markdown may be stated as a percent of the original selling price. |
| Dollar markup | Selling price less cost. Difference is the amount of the markup. Markup is also expressed in percent. |
| Fixed costs (FC) | Costs that do not change with increase or decrease in sales. |
| Gross profit | Difference between cost of bringing goods into the store and selling price of the goods. |
| Margin | Difference between cost of bringing goods into store and selling price of goods. |
| Markdowns | Reductions from original selling price caused by seasonal changes, special promotions, and so on. |
| Markup | Amount retailers add to cost of goods to cover operating expenses and make a profit. |
| Net profit (net income) | Gross profit – Operating expenses. |
| Operating expenses (overhead) | Regular expenses of doing business. These are not costs. |
| Percent markup on cost | Dollar markup divided by the cost; thus, markup is a percent of the cost. |
| Percent markup on selling price | Dollar markup divided by the selling price; thus, markup is a percent of the selling price. |
| Perishable | Goods or services with a limited life. |
| Selling price | Cost plus markup equals selling price. |
| Variable costs (VC) | Costs that do change in response to change in volume of sales. |
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