Eva is considering new items for her store and is concerned about her profit margin. She will ask the sales rep:
A) what the unit cost is and the suggested retail price
B) what is the marginal turnover rate and the expected delivery time
C) what are servicing requirements and the cost of repairs
D) Which JIT system will maximize in-store inventory
E) how likely will competitors substitute derived demand products for institutional design requirements

Question

Quizplus · Accepted Answer

Knowing the unit cost and suggested retail price will allow Eva to calculate her profit margin and make an informed decision about whether or not to stock the item in her store. The other options do not directly address Eva's concern about profit margin.

Eva Is Considering New Items for Her Store and Is