GMROI- gross margin return on investment.

Calculated by dividing gross margin dollars by average inventory cost, expressed in dollars; represents number of dollars of margin earned from each dollar of inventory invested.

Initial Markup- The difference between original selling price and cost. It is expressed as a percent of original selling price.

Sales per full-time employee: Calculated by dividing total full-time equivalent employees and dividing that figure into median sales per store.

Median: term used interchangeably with “typical” and “middle” to represent the mid-point, that is, one-half of the responses are above that point, one half are below.

Sales per square foot: The store sales divided by the total square footage of the store including stock space, selling floor and office.

Wages and Salaries: includes payments to owner (salary or draw), manager, buyer, and other personnel such as warehouse and office staff, but does not include the cost of employee benefits.