Question 1

If a retailer's gross margin is tracking below plan, which of these options would increase their gross margin?

Accepted Answer

A)  Negotiate better prices with vendors to decrease cost of goods sold 
B)  Increase payroll 
C)  Increase markdowns 
D)  Decrease utilities 
E)  Defer paying taxes 
A)  Negotiate better prices with vendors to decrease cost of goods sold 
B)  Increase payroll 
C)  Increase markdowns 
D)  Decrease utilities 
E)  Defer paying taxes

Question 2

Alpha is popular loungewear that prides itself on its versatility. Last year, its net sales were $1,750,000 with cost of goods of $390,000. The company's operating expenses totaled $960,000. Calculate the company's net operating profit margin percentage.

Accepted Answer

A)  77.1 percent 
B)  22.2 percent 
C)  22.9 percent 
D)  12.5 percent 
E)  19.3 percent 
A)  77.1 percent 
B)  22.2 percent 
C)  22.9 percent 
D)  12.5 percent 
E)  19.3 percent

Question 3

When Nick is figuring the current assets for his nail salon, he should be certain to include ________ in his calculations.

Accepted Answer

A)  the cash in the drawer 
B)  accrued liabilities 
C)  fixed assets 
D)  notes receivable 
E)  retained earnings 
A)  the cash in the drawer 
B)  accrued liabilities 
C)  fixed assets 
D)  notes receivable 
E)  retained earnings

Question 4

How is operating profit margin percent calculated?

Accepted Answer

A)  Gross margin divided by net sales 
B)  Add operating and interest expenses together and divide by gross sales 
C)  Net sales multiplied by gross margin 
D)  Cost of goods sold divided by gross sales 
E)  Divide operating profit by net sales 
A)  Gross margin divided by net sales 
B)  Add operating and interest expenses together and divide by gross sales 
C)  Net sales multiplied by gross margin 
D)  Cost of goods sold divided by gross sales 
E)  Divide operating profit by net sales

Question 5

As Dean calculates his current assets for his used video game store, he is sure to include which of the following?

Accepted Answer

A)  Merchandise inventory 
B)  Accrued liabilities 
C)  Fixed assets 
D)  Notes receivable 
E)  Retained earnings 
A)  Merchandise inventory 
B)  Accrued liabilities 
C)  Fixed assets 
D)  Notes receivable 
E)  Retained earnings

Question 6

By knowing the return on assets for his bakery, Chuck will know

Accepted Answer

A)  how much profit was generated from his investment in assets. 
B)  information found only on his balance sheet. 
C)  information found only on his income statement. 
D)  total assets divided by net profits. 
E)  total assets divided by owners' equity. 
A)  how much profit was generated from his investment in assets. 
B)  information found only on his balance sheet. 
C)  information found only on his income statement. 
D)  total assets divided by net profits. 
E)  total assets divided by owners' equity.

Question 7

If a retailer's gross margin percent is on plan, however the retailer is tracking below plan for net operating profit margin plan, which of these options would help improve their situation?

Accepted Answer

A)  increase cost of goods 
B)  increase markdowns 
C)  increase payroll 
D)  decrease selling, general and administrative expenses 
E)  borrowing money from a lender 
A)  increase cost of goods 
B)  increase markdowns 
C)  increase payroll 
D)  decrease selling, general and administrative expenses 
E)  borrowing money from a lender

If a retailer's gross margin is tracking below plan, which of these options would increase their gross margin?

Alpha is popular loungewear that prides itself on its versatility. Last year, its net sales were $1,750,000 with cost of goods of $390,000. The company's operating expenses totaled $960,000. Calculate the company's net operating profit margin percentage.

When Nick is figuring the current assets for his nail salon, he should be certain to include ________ in his calculations.

How is operating profit margin percent calculated?

As Dean calculates his current assets for his used video game store, he is sure to include which of the following?

By knowing the return on assets for his bakery, Chuck will know

If a retailer's gross margin percent is on plan, however the retailer is tracking below plan for net operating profit margin plan, which of these options would help improve their situation?

Introduction to the World of Retailing

Types of Retailers

Multichannel and Omnichannel Retailing

Customer Buying Behavior

Retail Market Strategy

Retail Locations

Retail Site Location

Information Systems and Supply Chain Management

Customer Relationship Management

Managing the Merchandise Planning Process

Buying Merchandise

Retail Pricing

Retail Communication Mix

Human Resources and Managing the Store

Store Layout, Design, and Visual Merchandising

Customer Service

Filters

Exam 6: Financial Strategy

If a retailer's gross margin is tracking below plan, which of these options would increase their gross margin?

Alpha is popular loungewear that prides itself on its versatility. Last year, its net sales were $1,750,000 with cost of goods of $390,000. The company's operating expenses totaled $960,000. Calculate the company's net operating profit margin percentage.

When Nick is figuring the current assets for his nail salon, he should be certain to include ________ in his calculations.

How is operating profit margin percent calculated?

As Dean calculates his current assets for his used video game store, he is sure to include which of the following?

By knowing the return on assets for his bakery, Chuck will know

If a retailer's gross margin percent is on plan, however the retailer is tracking below plan for net operating profit margin plan, which of these options would help improve their situation?

Introduction to the World of Retailing

Types of Retailers

Multichannel and Omnichannel Retailing

Customer Buying Behavior

Retail Market Strategy

Retail Locations

Retail Site Location

Information Systems and Supply Chain Management

Customer Relationship Management

Managing the Merchandise Planning Process

Buying Merchandise

Retail Pricing

Retail Communication Mix

Human Resources and Managing the Store

Store Layout, Design, and Visual Merchandising

Customer Service

Filters