A Local Apparel Shop Sets Prices by Adding a 45

question 179

Multiple Choice

A local apparel shop sets prices by adding a 45 percent markup to the invoice price charged by the supplier.This method of pricing is known as _____ pricing.

• A)cost-plus
• B)breakeven
• C)full-cost
• D)incremental-cost

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Definitions:

Supply Chain Revenues

The total income generated from the end-to-end processes involved in the production and distribution of goods.

Quick Response

A strategy in the retail industry to increase efficiency by replenishing products quickly based on consumer demand signals.

Overstock Quantity

Excess inventory that exceeds the demand for a product, often resulting in holding costs and potential markdowns.

Profits

are the financial gains that remain after all expenses, including costs of goods sold, operating expenses, and taxes, have been subtracted from a company's total revenue.