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Chapter 8
Descrição
Chapter 8 Mind Map
Sem etiquetas
chapter 8 mind map
business/economics
Mapa Mental por
MICHELLE MOORE
, atualizado more than 1 year ago
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Criado por
MICHELLE MOORE
mais de 4 anos atrás
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Resumo de Recurso
Chapter 8
Selling Price
price retailers charge consumers
Selling Price = Cost + Markup
Cost
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
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
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
Breakeven Point
point at which costs and expenses are covered
Breakeven = Fixed Costs / Contribution Margin
Fixed Costs (FC)
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
Contribution Margin
Contribution Margin = Selling Price - Variable Costs
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
Perishables
Selling Price of Perishables = Total Dollar Sales / number units produced - Spoilage
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