Given the following information, calculate the firm's stockturn rate. \[\begin{array} { l c } \text { Net sales } & \$ 480,000 \\ \text { Gross margin \% } & 50 \% \\ \text { Average inventory at cost } & \$ 40,000 \end{array}\]

A) 7 B) 10 C) 3 D) 6 E) Cannot be determined from data given. A) 7 B) 10 C) 3 D) 6 E) Cannot be determined from data given.

A) is something (past sales, industry sales, etc.) times some factor equals sales forecast. B) is a simple extension of past sales. C) is typically limited to just one factor. D) assumes past conditions will continue unchanged into the future. E) does not include variables such as population, income, and sales in a market. A) is something (past sales, industry sales, etc.) times some factor equals sales forecast. B) is a simple extension of past sales. C) is typically limited to just one factor. D) assumes past conditions will continue unchanged into the future. E) does not include variables such as population, income, and sales in a market.

Use the information below to answer the following questions that refer to Table B-1. Based on the information in Table B-1, the markdown percentage is: \[\begin{array} { l c } { \text { Table B-1 } } \\ \text { Gross sales } & \$ 650,000 \\ \text { Returns } & \$ 40,000 \\ \text { Allowances } & \$ 10,000 \\ \text { Markdowns } & \$ 20,000 \\ \text { Beginning inventory } & \$ 50,000 \\ \text { Ending inventory } & \$ 30,000 \\ \text { Expenses } & 25 \% \\ \text { Stockturn rate } & 10 \\ \text { Investment } & \$ 250,000 \end{array}\]

A) 20%. B) 25%. C) 15%. D) 5%. E) 10%. A) 20%. B) 25%. C) 15%. D) 5%. E) 10%.

Exam 20: Marketing Arithmetic

A research company was asked by a trade association to conduct a study that would forecast sales and other key trends in the office furniture industry for the next 10 years. The research company set up a series of interviews with key decision-makers who worked for office furniture producers, wholesalers, and retailers. The company combined the results of these interviews and tried to gain a consensus. The research firm was using:

(Multiple Choice)

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Question 81

When comparing the figures for market potential and sales forecast for the same market segment, the sales forecast figure should always be larger.

(True/False)

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Question 82

Aiwa Industries sells directly to auto parts retailers and is trying to set a price on a radar detector so that its retailers can sell it for $100. If the retailers need a 30 percent markup--and Aiwa can produce the item for $35--what markup could Aiwa take for itself?

(Multiple Choice)

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Question 83

Not all past economic or sales behavior can be neatly extended with a straight line or some manipulation.

(True/False)

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Question 84

The weakness of the trend extension method is that it

(Multiple Choice)

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Question 85

Given the following information, calculate the firm's stockturn rate. Net sales \ 480,000 Gross margin \% 50\% Average inventory at cost \ 40,000

(Multiple Choice)

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Question 86

A retailer's "markdown ratio" is calculated directly from its operating statement.

(True/False)

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Question 87

It is impossible for a firm's stockturn rate to equal 1.0.

(True/False)

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Question 88

Generally, a marketing manager doesn't have to make forecasts for a national economy or the broad industry.

(True/False)

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Question 89

If a wholesaler's markup on selling price is 50 percent, what is the markup on cost?

(Multiple Choice)

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Question 90

A major limitation of the factor method is that it does not allow several factors to be used together.

(True/False)

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Question 91

Markdowns are generally considered to be due to business errors, while returns result from customer errors.

(True/False)

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Question 92

The term "net profit" refers to the amount the company has earned from its operations during a particular period.

(True/False)

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Question 93

"Expenses" (on an operating statement) usually include the cost of sales--both purchased and produced.

(True/False)

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Question 94

Sales and Marketing Management's "Buying Power Index" is not very useful for sales forecasting because it only considers the population in markets.

(True/False)

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Question 95

The factor method

(Multiple Choice)

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Question 96

A measure of the number of times the average inventory is sold during a year is stockturn rate.

(True/False)

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Question 97

The stockturn rate shows how rapidly a firm's inventory is moving.

(True/False)

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Question 98

Sales forecasting using the jury of executive opinion, sales force estimates, and/or market tests may be especially useful when:

(Multiple Choice)

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Question 99

Use the information below to answer the following questions that refer to Table B-1. Based on the information in Table B-1, the markdown percentage is: Table B-1 Gross sales \ 650,000 Returns \ 40,000 Allowances \ 10,000 Markdowns \ 20,000 Beginning inventory \ 50,000 Ending inventory \ 30,000 Expenses 25\% Stockturn rate 10 Investment \ 250,000

(Multiple Choice)

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Question 100

Showing 81 - 100 of 134

When comparing the figures for market potential and sales forecast for the same market segment, the sales forecast figure should always be larger.

Aiwa Industries sells directly to auto parts retailers and is trying to set a price on a radar detector so that its retailers can sell it for $100. If the retailers need a 30 percent markup--and Aiwa can produce the item for $35--what markup could Aiwa take for itself?

Not all past economic or sales behavior can be neatly extended with a straight line or some manipulation.

The weakness of the trend extension method is that it

Given the following information, calculate the firm's stockturn rate. Net sales \ 480,000 Gross margin \% 50\% Average inventory at cost \ 40,000

A retailer's "markdown ratio" is calculated directly from its operating statement.

It is impossible for a firm's stockturn rate to equal 1.0.

Generally, a marketing manager doesn't have to make forecasts for a national economy or the broad industry.

If a wholesaler's markup on selling price is 50 percent, what is the markup on cost?

A major limitation of the factor method is that it does not allow several factors to be used together.

Markdowns are generally considered to be due to business errors, while returns result from customer errors.

The term "net profit" refers to the amount the company has earned from its operations during a particular period.

"Expenses" (on an operating statement) usually include the cost of sales--both purchased and produced.

Sales and Marketing Management's "Buying Power Index" is not very useful for sales forecasting because it only considers the population in markets.

The factor method

A measure of the number of times the average inventory is sold during a year is stockturn rate.

The stockturn rate shows how rapidly a firm's inventory is moving.

Sales forecasting using the jury of executive opinion, sales force estimates, and/or market tests may be especially useful when:

Marketing39s Value to Consumers, Firms, and Society

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Evaluating Opportunities in the Changing Marketing Environment

Focusing Marketing Strategy With Segmentation and Positioning

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

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Product Management and New-Product Development

Place and Development of Channel Systems

Distribution Customer Service and Logistics

Retailers, Wholesalers, and Their Strategy Planning

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Personal Selling and Customer Service

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Price Setting in the Business World

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

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