Which of the Following Statements About Limited-Function Wholesalers Is TRUE

question 112

Multiple Choice

Which of the following statements about limited-function wholesalers is TRUE?

• A) Cash-and-carry wholesalers serve small retailers but don't provide credit.
• B) Truck wholesalers sell perishable products which other wholesalers prefer not to carry.
• C) Rack jobbers specialize in nonfood products that sell in small quantities.
• D) Catalog wholesalers sell hardware, jewelry, sporting goods, and general merchandise--often catering to small industrial or retailer customers.
• E) All of the above are true.

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Definitions:

Margin

Net operating income divided by sales.

Contribution Margin Ratio

The percentage of each sale that contributes to covering fixed costs, calculated as contribution margin divided by sales revenue.

Fixed Expenses

Expenditures that stay unchanged despite differences in the volume of production or sales, covering items like rental fees, payroll, and coverage costs.

Sales

The exchange of goods or services for money, quantifying the performance and profitability of a business.