Business of Retail Ch. 4 The Retail Profit Model

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The Goodwill Thrift Store decided to end all of their prices in .97, a few cents less than the round number. This is an example of

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Psychological Pricing

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_____________ is the amount of money that comes into a retail business minus expenses

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Margin

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Courtney is the buyer for a small produce store and she sells 25 bags of oranges at $12 per bag. Her cost of goods sold per bag is $7. What is Courtney’s gross profit?

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$125

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Which of the following would you categorize as the COGS if operating a taco truck? Cost of the meat, shells, and cheese; Cost of the permit to operate the food truck; Gas and maintenance costs; Your salary

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Cost of the meat, shells, and cheese

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The image to the side shows an example of which pricing strategy?

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Psychological Pricing

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The “S” in MSRP stands for ______________.

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Suggested

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Jim is opening and operating a small online retail shop. What should he take into consideration when setting a retail price? Customers’ price preferences, The amount of money you want to make on each item, The price set by the competitors on the same or similar products, The cost of products, website service fees, competitor’s prices, and the money you want to make on each item

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The cost of products, website service fees, competitor’s prices, and the money you want to make on each item

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What will happen to Macey's gross profit if she marks down summer apparel to make room for fall items?

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Gross profit goes down

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If a store’s revenue is $3,050 and its cost of goods sold (COGS) is $1110, what is the business’s gross profit?

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$1,940

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A store pays for a schoolbag $12 and sells it for $18. Since school has already begun and sales have slowed down, they need to markdown its price. What is the lowest they can mark down the backpack if they want to still make $3 in profit?

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16.7%