Last Quarter, a Retailer Sold 8,000 T-Shirts, 7,000 of Which

question 7

Multiple Choice

Last quarter, a retailer sold 8,000 t-shirts, 7,000 of which were sold directly from on-hand inventory.This retailer's ________ was 88%.

• A)fill rate
• B)inventory yield
• C)profit margin
• D)inventory turnover
• E)none of the above

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Definitions:

Variable Cost

Expenses that change in proportion to the level of production or sales activities of a company, such as raw materials and direct labor costs.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, typically represented by an area on a graph.

Supply Curve

A graph displaying the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to provide, holding all else equal.

Diminishing Marginal Product

A principle stating that as more of a variable input is added to a fixed input, the additional output produced from each additional unit of the variable input eventually decreases.