This topic contains a solution. Click here to go to the answer

Author Question: Which two methods of merchandise presentation have the greatest potential to convey low-cost, ... (Read 111 times)

savannahhooper

  • Hero Member
  • *****
  • Posts: 576
Which two methods of merchandise presentation have the greatest potential to convey low-cost, low-price, and high-volume image?
 a. Stacking and shelving
  b. Pegging and folding
  c. Dumping and shelving
  d. Stacking and dumping
  e. Hanging and pegging

Question 2

Explain the strategic profit model (SPM).



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

bd5255

  • Sr. Member
  • ****
  • Posts: 386
Answer to Question 1

D

Answer to Question 2

The most frequently encountered profit objectives for a retailer are shown in the strategic profit model (SPM), a tool used to assess a firm's profitability. The five elements of the SPM elements include net profit margin, asset turnover, return on assets, financial leverage, and return on net worth.
 Net profit margin is the ratio of net profit (after taxes) to net sales. It shows how much profit a retailer makes on each dollar of sales after all expenses and taxes have been met.
 Asset turnover is computed by taking the retailer's annual net sales and dividing by total assets. This ratio shows how productively the firm's assets are being used.
 Return on assets (ROA), which is annual net profit divided by total assets, depicts the net profit return the retailer achieved on all assets invested regardless of whether the assets were financed by creditors or by the firm's owners. ROA is the result of multiplying the net profit margin by asset turnover.
 Financial leverage is total assets divided by net worth or owners' equity. This ratio shows the extent to which a retailer is using debt in its total capital structure.
 Return on net worth (RONW) is net profit divided by net worth or owner's equity. Return on net worth is usually used to measure owner's performance. The ROA multiplied by financial leverage yields RONW.





 

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

For a complete list of videos, visit our video library