How Does a Retailer Select Which Merchandise Presentation Technique It

question 3

Multiple Choice

How does a retailer select which merchandise presentation technique it will use?

• A) Look at the profit potential of each product
• B) Look at the product's packaging to see if it requires any special displays
• C) Consider what is consistent with the store's image
• D) Consider the nature of the product
• E) A retailer does all of these

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity.

Variable Costs

Costs that vary directly with the level of production or service delivery.

Flexible Budget

A budget designed to adapt in accordance with fluctuations in activity level or volume.

Contribution Margin

The amount by which sales revenue exceeds variable costs of a product, indicating how much contributes to covering fixed costs and generating profit.