RETAIL MATH EXAMPLES
Retail Buying Math Practice from Chapter 2 (worth 8 points)
An item cost a retailer $62.12. If it sold for $125.00, what was the markup percentage?
(125-62.12)/$125 Markup %= (62.88/$125) = Markup % is 50.3%
An item retails for $150.00. If it cost the store $71.25, what was the markup percentage?
(150-71.25)/$150 Markup %= (78.75/150) = 52.5%
At the beginning of the season, a buyer’s inventory of socks had a total retail value of $5,600. The socks had cost $2,750. What is the cumulative markup percentage for these socks at the beginning of the season?
2750-5600= -50.4%
At the beginning of the season, a buyer purchased 700 scarves for $8,000. A retail price of $20.00 was placed on each scarf. What is the cumulative markup percentage for the scarves at the beginning of the season?
At the beginning of the season, a buyer’s inventory of white t-shirts had the following values:
Total Cost: $5,400
Total Retail: $10,000
The following purchase was added to inventory—600 T-shirts costing $3,000. A $12.00 retail price was placed on the T-shirts. What is the cumulative markup percentage to date?
Markup: 53.2%
Beginning inventory for a department is $59,345 at cost and $120,500 at retail. New purchases have been received with a cost of $8,456 and a retail value of $26,112. What is the cumulative markup percentage to date?
At the beginning of the season, a buyer’s inventory of sweat shirts had the following values:
Total Cost: $2,433
Total Retail: $4,500
Two new purchases have just arrived. 100 sweatshirts costing $25 each will be added to inventory and retail at $55 each. 100 sweatshirts costing $21 each will be added to inventory and retail at $55 each. What is the cumulative markup percentage to date?
0.4760 Markup=47.6%
At the beginning of the season, a buyer’s inventory of tank tops had the following values:
Total Cost: $765
Total Retail: $1,750
Three new purchases have just arrived. Fifty tank tops costing $564 will be retailed at $20. One hundred tank tops costing $1,020 will also be added to inventory at a retail price of $20. Finally, 200 tank tops costing $1,950 will be added to inventory at a retail price of $20. What is the cumulative markup percentage to date?
Cost:765 Retail:
50 tank tops, costing 564, retail at 20 each : 28,200 1000
100 tank tops, costing 1020 retail 20 each: 102,000 2000
200 tank tops costing 1950 retail 20 each: 390,000 4000
520,000- 8750
50.9 % Markup
Retail Buying Math Practice from Chapter 3 (22 points)
During the month, net sales for a menswear store were $215,768. Cost of goods sold was $105,800, and operating expenses totaled $80,980. What profit (before taxes) was achieved by the store for the month? (1 point)
Profit $28,988
Net Sales 215,768
-Cost of Goods Sold 105,800
=Gross Margin $109,968
Operating expenses 80,980
= Profit ($ 28,988 before taxes)
Based on the income profit/loss statement that follows, calculate the percentage that each element represents. (5 points)
Sales $567,100 100%
Cost of Goods Sold $251,000 44.2%
Gross Margin $316,100 55.7%
Operating Expenses $285,500 50.3%
Profit/Loss $ 30,600 5.39%
A store has the following figures available: sales were $220,000; cost of goods sold were $160,000; and operating expenses were $70,000. Calculate gross margin and profit for this store. (2 points)
Gross Margin:60,000
Profit: 10,000
Based on the information that follows, calculate the components of and income/profit or loss statement as a dollar amount and as a percentage. (7 points)
Sales $250,000 100%
Cost of Goods Sold $118,500 47.4%
Operating Expenses $105,200 42.08%
Gross Margin $131500 52.6%
Profit/Loss $26,300 10.52%
Based on the information that follows, calculate the components of and income/profit or loss statement as a dollar amount and as a percentage. (7 points)
Sales $600,253 100%
Cost of Goods Sold $301,112 50.1%
Operating Expenses $256,825 42.7%
Gross Margin $299,141 49.8%
Profit/Loss $42,316 7.04%
RETAILL MATH PROBLEMS
Since I've attended this class I found that this assignment was one of the best yet most informative to help me build a strong agenda for my future career. I learned that being able to switch in and out of this type of situation is very helpful. For example, being able to calculate a business's gross margin and profit for the stores. along with the understanding of how sales, operating expenses, cost of goods sold, gross margin, and profit/loss was one easy practice that I comprehended. The most challenging was being able to determine markup even do the format seems steady it also is challenging in the sense of not being able to understand some situations of inventory and what it cost and sold for to complete the equation but I find myself getting better at these calculations by doing real-world problems and studying equations.