As a rule, a retailer’s pricing and promotion decisions should be made independently of
each other.
Retailers usually classify sales promotions as either sole sponsored or joint sponsored.
Demand density is the extent to which retailers are concentrated in different geographic
areas of the community.
A percentage markup of 50 percent on selling price would be the same as a 50 percent
markup on cost.
If a retailer has a net profit margin of 2.0 percent and an asset turnover of 3.0, then its
ROA will be 6.0 percent.
Buyers should always approach vendors with two important pieces of information: the
vendor profitability analysis statement and the confidential vendor analysis.
Explain the components of the income statement and the interrelationships between the
income statement, balance sheet and statement of cash flows.
Depth is the average number of SKUs within each brand of the merchandise line.