Giardetti, a Retailer, Placed an Advertisement in a Local Newspaper

question 48

True/False

Giardetti, a retailer, placed an advertisement in a local newspaper on May 5^th that read: "Special Sale! New 16" portable TV set available for sale to the first 10 customers at my store on May 10^th at a sale price of $100 each. Regular price $199. First come, first served!" Don was the 10^th customer in the store on May 10^th, but Giardetti refused to sell him a TV set for $100. If Don had seen the notice on the shop door on May 9^th; he could still accept the offer, because the offer was irrevocable.

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating the amount available to cover fixed costs and generate profit.

Gross Margin

The difference between sales revenue and the cost of goods sold, which represents the profitability of selling goods.

Gross Margin

The difference between sales revenue and the cost of goods sold, indicating the profitability of a company's core activities.

Traditional Format

An accounting income statement format that categorizes costs by their function, such as cost of goods sold, operating expenses, and other expenses.