Why Is It Important for Stores to Be Designed with Flexibility

question 98

Multiple Choice

Why is it important for stores to be designed with flexibility in mind?

• A) It is less expensive for retailers to build several different types of flexible fixtures than to build one inflexible fixture
• B) Stores with newer designs can respond to seasonal changes without large-scale renovations
• C) Customers find it hard to locate merchandise if fixtures are rigid
• D) Department managers never know what to expect from the planners' allocations and require the ability to display more merchandise at a moment's notice
• E) All of these

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Definitions:

Fixed Costs

Costs that do not fluctuate with the level of production or sales, such as rent, salaries, and insurance premiums.

Sales Dollars

Sales dollars refer to the total monetary value of all sales transactions made by a company over a period, without deducting any costs or expenses.

Break-Even Point

The sales level at which a business generates revenue equal to its expenses, resulting in neither profit nor loss.

Variable Costs

Financial obligations that shift depending on the level of manufacturing or sales activity.