25192633
Description
Mind Map by MICHELLE MOORE, updated more than 1 year ago
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Created by MICHELLE MOORE
almost 4 years ago
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Chapter 8
- Selling Price
- price retailers charge consumers
- Selling Price = Cost + Markup
- price retailers charge consumers
- Cost
- the price retailers pay to a manufacturer
- the price retailers pay to a manufacturer
- Markup
- difference between cost of bringing goods into the store and the selling price
- the amount that retailers must add to the cost of the goods to cover their operating expenses and make a profit
- the amount that retailers must add to the cost of the goods to cover their operating expenses and make a profit
- Markup = Selling Price - Cost
- Percent Markup
- a percent based on cost or a percent based on selling price
- Percent Markup on cost = Dollar Markup / Cost
- a percent based on cost or a percent based on selling price
- difference between cost of bringing goods into the store and the selling price
- Net Profit
- the profit remaining after subtracting the cost of bringing the goods into the store and the operating expenses from the sale of the goods
- the profit remaining after subtracting the cost of bringing the goods into the store and the operating expenses from the sale of the goods
- Breakeven Point
- point at which costs and expenses are covered
- Breakeven = Fixed Costs / Contribution Margin
- Breakeven = Fixed Costs / Contribution Margin
- Fixed Costs (FC)
- costs that do not change with increases or decreases in sales
- costs that do not change with increases or decreases in sales
- Variable Costs (VC)
- costs that do not change in response to changes in the volume of sales
- costs that do not change in response to changes in the volume of sales
- Contribution Margin
- Contribution Margin = Selling Price - Variable Costs
- Contribution Margin = Selling Price - Variable Costs
- point at which costs and expenses are covered
- Markdown
- reductions from the original selling price caused by seasonal changes, special promos, style changes
- Dollar Mardown = Original Selling Price - New Selling Price
- Percent Markdown
- Markdown Percent = Dollar Markdown / Original Selling Price
- Markdown Percent = Dollar Markdown / Original Selling Price
- reductions from the original selling price caused by seasonal changes, special promos, style changes
- Perishables
- Selling Price of Perishables = Total Dollar Sales / number units produced - Spoilage
- Selling Price of Perishables = Total Dollar Sales / number units produced - Spoilage
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