Chapter 8 terms

Beschreibung

The key terms for chapter 8
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Zusammenfassung der Ressource

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Breakeven Point Point at which seller has covered all expenses and costs and has made no profit or suffered a loss
Contribution Margin 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 Cost Cost 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
MarkdownsRed 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 to make a profit.
Net Profit(Net Income) Gross profit - Operating expenses
Operating Expense (overhead) Regular expenses of doing business. These are not cost.
Percent Markk on Costp 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
Perishables Goods or services with a limited life.
Selling Price Cost plus markup equals selling price
Variable Cost Cost that do change in response to change in volume of sales.
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