Briefly discuss what gross profit represents and how it affects the net earnings of a merchandiser
What will be an ideal response
Gross profit is the difference between net sales revenue and cost of goods sold. It represents the markup on the merchandise inventory and is a measure of a merchandiser's success. A sufficiently high gross profit is vital to a merchandiser. The gross profit must cover the company's operating expenses for the company to survive.
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Expressing profits through the relationship among unit price, fixed costs, and variable costs is an example of
A) a sensitivity analysis model. B) a quantitative analysis model. C) a postoptimality relationship. D) a parameter specification model. E) None of the above
Complete the above MRP record. Which of the following statements is correct?
A) The projected available in period three is 105. B) The planned order release of 100 is in period 5. C) The projected available in period three is five. D) A planned order for 50 should be released in period two E) The planned order release of 100 is in period 3.