Why Is Walmart's Model an Example of Retail Distribution

question 265

Multiple Choice

Why is Walmart's model an example of retail distribution?

• A)Because it is so important on the Canadian retail scene
• B)Because it buys products directly from manufacturers
• C)Because it employs more retail employees than any other firm
• D)Because it uses sales agents only for its sporting goods department
• E)Because many industrial buyers shop there

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Definitions:

Budgeted Income Statement

A financial statement forecasting the revenues, expenses, and net income for a specific period, based on proposed budgets and assumptions.

Contribution Margin Ratio

A financial metric that measures the proportion of sales revenue that exceeds variable costs, indicating how much contributes to covering fixed costs and generating profit.

Sales

The total amount of revenue a company generates from the sale of goods or services before any expenses are deducted.

Margin of Safety

The difference between actual or expected sales and the break-even point, reflecting the cushion against a loss.