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4. Customer returns ratio. As with the gross margin ratio, the BEP also is affected by any change in the customer returns ratio, an important KPI to monitor monthly. A return rate for a typical gift catalog is 6 percent. Any variance in either direction from your normal ratio will affect your BEP.
5. Average order value (AOV). Any change in your AOV will result in more or less orders affecting operations. Your AOV must be tracked so adjustments to the weekly order line can be made since staffing and labor dollars are affected.
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