BoR Chapter 4 Review

The Goodwill Thrift Store was working on their pricing strategy. They decided to end all their prices in .97, a few cents less than the round number. So instead of selling a pair of pants at $15.00, they would sell them at $14.97. This is an example of

• Competitive Pricing
• Vendor Pricing
• Psychological Pricing
• Mark Down

Which of the following refers to the amount of money that a retailer makes after accounting for expenses?

• Profit
• Revenue
• Cost of Good Sold
• Operating Costs

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.

The "S" in MSRP stands for ______________________.

• Store
• Standard
• Suggested
• Solution

Macey owns a clothing shop in which her current assortment includes summer apparel. It's nearing end of summer so in order for her to make room for fall items, she decides to mark the items down in order to move them out of the store. What will happen to her gross profit if she does this?

• Gross profit goes up
• Gross profit goes down
• Gross profit stays the same
• Gross profit is unchanged

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

• Forecasting

• Revenue

• Margin

• Reconciliation

A business makes $5100 in daily revenue and on average, spends $1400 in the products sold and $2000 on employee salaries and other expenses. What's the daily net profit of the business?

• $1,700
• $4,400
• $1,500
• $3,700

If a store's revenue is $3,050 and its cost of good sold is $1110, what is the business's gross profit?

• $400
• $2500
• $4160
• $1940

Which of the following refers to the total amount of money that a retailer brings in?

• Profit
• Revenue
• Cost of Goods Sold
• Operating Costs

Courtney, 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?

• $293
• $300
• $175
• $125