Exam 23: Financial Aspects of Marketing

The inventory for Jane Westerlund's picture frame store would include

__________ is a reduction in a retail price that is necessary if the items will not sell at the full selling price to which they have been marked up.

All of the following are operating ratios used to set a price for an offering except

A retailer of children's clothing had net sales of $72,000. But to get those sales, she had to reduce her prices by $2,000. Calculate her markdown.

When Beth purchased diabetic candy from a catalog retailer, she was sent orange- and lemon-flavored candy coated in dark chocolate. When she called to complain to the catalog retailer, she was told to keep the candy that was incorrectly sent to her, and that the company would immediately ship her the correct candy. This incorrectly sent candy would be listed as __________ on the operating statement for the catalog retailer.

__________ is the financial ratio that measures the ability of a firm to move its inventory quickly.

To increase the number of dogs boarding at its facilities, Muntz Kennels mailed coupons to dog owners who lived within a 25-mile radius of the facility. The printing and postage costs for the mailing plus the coupon redemptions would appear in which major expense category on the company's income statement?

Gross sales minus returns and allowances for a firm are called its

A company's gross sales may be reduced by

A company's operating statement is also called

All of the following are cost elements of an operating statement except

When Paulette saw the dress in the store window, she knew two things. She had to own the dress, and she could not afford it at its current price. As she viewed the dress in the store, she thought of the dress as her own and believed no one else would buy it. It seems she was right because no one else did buy it, and the store had to reduce its price by 30 percent in order to dispose of it. This made it affordable for Paulette, who took advantage of

The three major categories of expenses are

Leon George sold kites at the beach last summer. He invested $2,500 in kites and ended the season with $100 worth of kite inventory. Calculate his stock turn rate for the summer.

The __________ is the dollars added to cost of goods sold (COGS) to arrive at the selling price.

The total cost of the products sold by a firm during a specified period is referred to as

If Jane Westerlund, owner of a picture frame store, raises the average price of a framed picture to $100 and the cost of goods sold is $36, what is the percentage markup on selling price?

The gift shop purchased four sets of Block brand hand-painted stemware expecting to sell all four at the list price of $24.99. Unfortunately, the demand for the stemware was not as high as the owner had anticipated. She was only able to sell one at this price. She reduced the price on the other three sets to $16.49 and was able to sell all three sets. Calculate her markdown percentage.

Which of the following is a sales element of an operating statement?

Leon George sold kites at the beach last summer. He invested $2,500 in the venture and made $1,400 net profit (net income). Calculate his return on investment.