What Ratio Would a Retailer Utilize to Best Compare the Performance

question 81

Multiple Choice

What ratio would a retailer utilize to best compare the performance of cashmere sweaters to cotton sweaters?

• A)cost of goods sold percent
• B)gross margin percent
• C)operating expense percent
• D)fixed expense percent
• E)variable expense percent

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Definitions:

Total Fixed Costs

The sum total of costs that are unaffected by changes in production levels or output.

Short-Run

A phase where production can be adjusted only by varying the amounts of variable inputs, with fixed inputs remaining constant.

Level of Output

The total quantity of goods or services produced by a company or economy at a given time.

Short Run

A time period in economics during which at least one input in the production process is fixed, affecting production capabilities.