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 168 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?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Did you know?

About 600,000 particles of skin are shed every hour by each human. If you live to age 70 years, you have shed 105 pounds of dead skin.

Did you know?

Blood is approximately twice as thick as water because of the cells and other components found in it.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

For a complete list of videos, visit our video library