FREE CLEP Marketing Trivia Question and Answers
When the cost is $1,000 and the markup is $500, what percentage of the cost does the markup represent?
Explanation:
You must divide the markup by the cost to get the markup as a percentage of cost. In this case, the equation would be $500/$1,000 = 50.
Sears' sale of Craftsman tools is an illustration of:
Explanation:
A product is referred to as a family brand if the producer also controls the sales team.
Which of the following sorts of items best describes toilet paper?
Explanation:
A product that is regularly purchased is considered a staple.
A retailer that specializes in non-perishable goods like furniture and carries a broad selection of them. An example of such is hardware, electronics, etc.
Explanation:
Retailers who carry a wide range of non-perishable goods rely on general merchandise wholesalers.
What service(s) or activities are provided by wholesalers?
Explanation:
Wholesalers minimize a producer's inventory levels by storing goods, providing capital to lessen the producer's demand for working capital, lowering credit risk by doing business with known clients, and offering market intelligence as a buyer and seller.
Sue wants to start teaching kids tennis, but she needs to figure out how much she should charge per lesson. Her acquaintance advised her that the markup percentage should be 15% and the markup amount should be $17. What is the selling price?
Explanation:
We must first determine the cost. This can be calculated using the following formula: Markup Percent on Cost * Cost = Amount of Markup. The result of the calculations is .15 * Cost = $17. We now have $113.33. After setting the selling price equal to selling price = cost + markup, we can calculate the selling price as follows: selling price = $113.33 +.15($113.33), or $130.33.
What act does price fixing fall under?
Explanation:
An agreement between rivals to set a uniform price for all producers or sellers of products or services is considered a horizontal restraint of trade under the Sherman Act 1. This kind of blatant trade restriction is anti-competitive and is therefore prohibited.