What are loss leaders designated to do?

Attract more customers to come into the store.

Price fixing occurs when

all competitors agree to sell a product at the same price

To a retail business owner, what is "cost"?

The amount paid to suppliers for merchandise

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Questions 12

Answers

1
In a retail business, what number do yo get by subtracting expenses from sales?
margin
overhead
discount
profit
2
The higher the price the lower the demand.
False
True
3
An example of a fixed cost for a business is
advertising cost
electric
gas to heat the building
water
4
A market share
changes over time
typically is higher for a business when prices are low
is a percentage of total sales in an industry by a company
All answers are correct
5
If a company sets a price too high, the following is likely to occur
Overtime
None would occur
Inventory
Shortage of a product
6
If a product costs $10 and the selling price is $15, the markup percentage would be
50%
167%
67%
None of the answers are correct
7
In a retail business, what number do you get by subtracting an items cost from it's price?
overhead
discount
markup
profit
8
What are loss leaders designated to do?
Reduce a store's tax burden.
Keep advertising budgets under control
Attract more customers to come into the store.
Drive competitors out of business
9
Price fixing occurs when
a store drastically increases the price of a product consumers need
all competitors agree to sell a product at the same price
Competitors agree to use the same vendor.
None of the answers define price fixing correctly
10
What report would you look at to find the sales for a week?
Inventory Report
Balance Sheet
Income Statement
Bank Statement
11
Movie Theaters sell slushies for $6. The cost to them is $0.25. What is the markup percentage?
2300%
95.8%
2400%
Correct Answer Doesn't Exist
12
To a retail business owner, what is "cost"?
The amount of money for salary expenses, utilities and equipment
the suggested retail price
The amount paid to suppliers for merchandise
The environmental damage caused by the store.

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