A DKNY vendor has offered to a Dillard's buyer an attractive discount on merchandise that had been returned to DKNY by a different retailer.The Dillard's buyer realizes the high gross margin opportunity,but refuses the offer nevertheless.Why?
A) The buyer wants to preserve Dillard's image as a fashion leader by not selling returned merchandise that could be out of season.
B) By accepting additional merchandise,Dillard's would be paying the additional costs of carrying the merchandise.
C) Dillard's would be accepting unknown merchandise and could risk the purchase as becoming more problems than it is worth.
D) Accepting the excess merchandise could alter the terms of the purchase as well as delivery dates.
E) Transportation costs would increase.
Correct Answer:
Verified
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