Flashcards in Klicker Chapter 11 Deck (23):

1

## The percentage derived by dividing the wholesale amount of the merchandise by the retail price of the merchandise

### Consumer Value Index

2

## CVI =

### Wholesale Cost / Retail Price

3

## Measures the value received for each dollar spent by the consumer

### CVI

4

## Gross Profit Margin =

### Retail Price - Wholesale Cost

5

## Measure profit of each casket to the funeral director/firm

### Gross Profit Margin

6

## The relationship between the wholesale cos of the merchandise and the total cost of both service and merchandise to the consumer

### Merchandise Value Ratio

7

## MVR =

### Wholesale Cost / Service and Merchandise

8

## A price determination method whereby the mark-up is multiplied by a constant factor; same mark up is applied to all caskets

### Fixed Multiple of Times Factor

9

## The sum of a group of numbers divided by the number of units

### Average (Mean)

10

## A value in an ordered set of values which represents the midpoint, whereby there are an equal number of values above and below the midpoint value

### Median

11

## The number that appears most frequently in a listing of numbers

### Mode

12

## A division of the total into four intervals, each one representing one-forth of the total

### Quartile

13

## The caskets sold in the 2nd and 3rd quartile

### Range

14

## In a display room that contains 22 caskets, describe the quartile

###
1st: 10% = 2.2 or 2

2nd: 27% = 5.9 or 6

3rd: 40% = 8.8 or 9

4th: 23% = 5.06 or 5

67% of caskets are in the range - most will buy out of the 2nd and 3rd quartiles

15

## The FTC requires that funeral directors use this pricing system

### Itimized

16

## A method of pricing by which each unit of service and merchandise is priced separately

### Itemization

17

## A method of price quotation which creates one total price package for both service and merchandise

### Unit Pricing

18

## A method of price quotation showing separately the price of the services and the price of the casket

### Bi-Unit Pricing

19

## A method of price quotation by which the charges are broken down into several component parts, such as professional service, facilities, automobile, and merchandise

### Functional Pricing

20

## A method of price quotation where certain items of service and merchandise are grouped together and sold at a specific price

### Package Pricing

21

## Factors which influence pricing

###
Competition's price policies

Legislation

Production costs

Distribution costs

Economic fluctuations

Type of merchandise

Marketing strategy

Purchasing practices

Selling costs

Value

22

## Difference between merchandise cost and selling price

### Mark Up

23