Chapter 8

Descrição

Chapter 8 Mind Map
MICHELLE MOORE
Mapa Mental por MICHELLE MOORE, atualizado more than 1 year ago
MICHELLE MOORE
Criado por MICHELLE MOORE mais de 4 anos atrás
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Resumo de Recurso

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

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