Which of the Following Is the First Step in the Retail

question 11

Multiple Choice

Which of the following is the first step in the retail management decision process?

• A) Developing the retail communication mix
• B) Buying merchandise
• C) Developing a retail marketing strategy
• D) Understanding the world of retailing
• E) Customer relationship management

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Definitions:

Fixed Expenses

Overheads such as rent, employee salaries, and insurance that do not fluctuate with changes in sales or manufacturing volumes.

Contribution Margin Per Unit

The selling price per unit minus the variable cost per unit, indicating how much contributes to covering fixed costs and profit.

Operating Income

The profit realized from a business's operations after deducting operating expenses such as wages and cost of goods sold.

Contribution Format

A type of income statement that separates fixed and variable costs to highlight the contribution margin.