Answers:
1.I
In retail, markup is the value that represents the difference between the original price of an item and price at which it is sold when the selling price is higher. The gross profit is the same as markup. For example, a product sells for 10 dollars, with 8 dollars being the cost. 2 dollars would be the gross profit earned through it, same as the markup (2 dollars).
2.G
The net profit is the essential profit on a product or service. This profit is the net earning on a sale after all costs are taken into account, such as: taxes, manufacturing costs, transport costs, utility charges and etc. The net profit represented as a percentage of the selling price is the net profit rate. For example, if the selling price of the item is 100 dollars, with the net profit on the item being 20 dollars, the net profit rate on the item would be 20%
3.A
Sales Potential is the estimation of the maximum quantity of sales of a product by prospective buyers during a defined period. It is illustrated as a percentage of the total market potential of that product. Sales potential helps a company to plan for the future, and take any and all measures to improve.
4.F
Pricing is the process through which a company allocates a specified price to its goods and services. Several factors are taken into account before a price is established. These factors include, but are not limited to: the brand name, manufacturing cost, competition in the market and the quality of the product.
5.C
Projecting sales is an essential part of business as it serves as a tool for a company to assess itself and to predict its performance in the future. Factor method accounts for the current market share of the company and the projected sales for the market over a span of the following year.
6.B
The markdown on an item is a reduction in the original retail price of an item, or more clearly defined as the difference in the original retail price and the actual selling price of the item. When the markdown is expressed as a percentage of the selling price, it is referred to as the markdown rate.
7.J
Operating expenses include all the costs that are involved in the functioning of a company, and these include the salaries of the employees, the rent of the area where the company is established, the taxes, the costs of electricity, water and other utility.
8.H
The market share of a company is the percentage of the total market sale that a company has. Market share is calculated for a period of time, and it involves dividing the company’s sales by the total sales of the market. For example, the market may be a cosmetic industry, and involves various brands like, Maybelline, Huda Beauty, Revlon etc. To calculate the market share of Maybelline in the cosmetic industry -divide total sales of Maybelline by the total sales of the cosmetic industry.
10. D
An opinion survey is a questionnaire. The questionnaire usually follows the release of a new product, and is conducted to assess the potential of the product to sell in the market. Volunteers are invited to sit and fill the survey after a presentation delivered by the representative of the company, and is common practice in the business world.
Hope this helps!
