Which of the Following Types of Merchants Has the Highest

question 71

Multiple Choice

Which of the following types of merchants has the highest share of retail online sales?

• A) virtual (Web only)
• B) catalog/call center
• C) retail chain
• D) consumer brand manufacturer

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Definitions:

Net Operating Income

The total profit of a business after operating expenses have been deducted, but before taxes and interest.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold, excluding fixed manufacturing overhead.

Contribution Margin

The gap between sales income and variable expenses, showing the extent to which income aids in offsetting fixed expenses and creating earnings.

Cost-Volume-Profit

An analysis tool used to determine how changes in costs and volume affect a company's operating income and net income.