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 93 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?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

For a complete list of videos, visit our video library