At a Retail Store, the Display Racks on Which Clothes

question 93

Multiple Choice

At a retail store, the display racks on which clothes are hung, the shelving, and the cash registers are all examples of ________.

• A) accessory equipment
• B) shopping products
• C) capital equipment
• D) component parts
• E) MRO products

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Definitions:

Residual Income

The net income an enterprise or project generates above its cost of capital or required rate of return.

Contribution Margin Ratio

A calculation that shows what percentage of sales revenue is available to cover the fixed costs of a business after variable costs have been paid.

Fixed Expenses

Costs that remain constant regardless of any change in a company's activity level, such as lease payments, insurance, and property taxes.

Sales

Represents the total income generated by a company from selling goods or services before any expenses are subtracted.