The Photography Department in a Department Store Experienced the Following

question 22

Multiple Choice

The photography department in a department store experienced the following revenue and expenses during October: $$\begin{array} { | l | r |} \hline \text { Sales } & \$ 11,000 \\\hline \text { Cost of Goods Sold } & 5,000 \\\hline \text { Direct Operating Expenses } & 800 \\\hline \text { Indirect Operating Expenses } & 2,100 \\\hline\end{array}$$ The photography departmental gross profit on sales is:

• A)$3,100.
• B)$5,200.
• C)$6,000.
• D)$8,100.

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Definitions:

Flexible Capacity

Denotes the ability of a business or production system to adjust output levels or operations in response to changes in demand or market conditions.

Demand Uncertainty

The inability to accurately forecast consumer demand, leading to challenges in supply chain planning and inventory management.

Price Uncertainty

The unpredictability of the cost of goods or services in the future, affecting budgeting and planning.

Warehousing Space

The area available for the storage of goods in a warehouse, crucial for inventory management and logistics.