A Markdown Refers to

question 212

Multiple Choice

A markdown refers to

• A) the difference between the final selling price and the retailer's cost.
• B) the amount the manufacturer adds to achieve the desired suggested retail price.
• C) discounting a product when it does not sell at the original price and an adjustment is necessary.
• D) the lowest price to which a retailer can reduce a sales ticket and still make a profit.
• E) the net margin.

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Definitions:

Units

In economics, units refer to the quantifiable measures used to express the quantity of an item, such as pieces, kilograms, liters, etc., used in transactions or production.

Total Cost

The complete cost of production, encompassing both fixed and variable costs, for a good or service.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced; decreases as production increases.

Average Variable Cost

The per unit cost of variable inputs divided by the total quantity of output produced, reflecting the variable cost of production.