ADescribe the Atmospherics-Related Advantages of Web-Based Retailers in Comparison to Traditional

question 81

Essay

a.Describe the atmospherics-related advantages of Web-based retailers in comparison to traditional store retailers.
b.Describe the atmospherics-related disadvantages of Web-based retailers in comparison to traditional store retailers.

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Definitions:

Margin Of Safety

The difference between actual or projected sales and the break-even point, indicating the amount by which sales can drop before the business incurs a loss.

Variable Expenses

Charges that escalate or decrease in sync with production quantities or sales levels, involving materials and workforce.

Fixed Expenses

Costs that do not change with the level of production or sales over a short period, such as rent or salaries.

Contribution Margin Ratio

A metric used to assess a product's profitability, calculated by subtracting variable costs from sales revenue and dividing by sales revenue.