Why Would a Retailer Measure Direct Product Profitability (DPP)

question 33

Multiple Choice

Why would a retailer measure direct product profitability (DPP) ?

• A) because DPP is highly correlated with the gross margin on a product
• B) because handling expenses are negligible compared with gross margin
• C) because handling costs can make products less profitable
• D) because gross margin on a product is too difficult to measure accurately
• E) because DPP removes the impact of paperwork expenses

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