Business 7,8,9

Compute the open-to-buy for a store with planned purchases of $3,500. Orders received total $975 and merchandise ordered totals $1,200.

$1,325

Last month, sales in the following categories were: Promotional items ($1,401 with returns of $214 and discounts of $159), Staple items ($2,306 with returns of $178), All other items ($2,298 with returns of $56). The total square footage of the selling space is 5,000 square feet. Compute the sales per square foot of selling space.

$1.08/square foot

Your staff consists of 5 cashiers, 2 stockers, and 3 salespeople. The cashiers are paid $10 per hour; the stockers are paid $9 per hour; the salespeople are paid $14 per hour. What is the average hourly wage across all your workers?

$11 per hour

Heather makes $6.55 per hour. She worked 25 hours last week. Heather had payroll deductions of $42.11 for federal, state, and local taxes, and for social security. What was Heather's take home pay?

$121.64

Last year, total sales for your grocery store were $10,342 with returns of $214 and discounts of $599. The linear feet of shelving in the store totals 575 linear feet. What are the sales per linear foot for the store?

$16.6/linear foot

Your store has 475 linear feet of shelving. Your first quarter sales were $75,000, and your second quarter sales were $86,000. (A quarter is a 3 month period of the year.) What are the average quarterly sales per linear foot?

$169

Last year, your store had total sales of $190,000. Because of a downturn in the economy, you expect sales to decrease by 3% this year. What are your planned sales for next year?

$184,300

You are ordering $190 of goods from a vendor. The vendor offers a 2% discount for payment within 30 days. Assume that you will take advantage of this discount. Shipping is $14.95. What is the total amount of this reorder?

$201.15

A store's buyer places an order for three dozen coffee mugs at a cost of $3.75 each, four dozen plastic glasses at a cost of $1.00 each, and two dozen insulated soft drink holders at a cost of $0.50 each. The delivery charge for this order is $7.50. There are no applicable discounts. What is the total cost of the order? One dozen = 12

$202.50

You place three orders for 100 soccer balls which cost $22 per ball. You receive all 300 balls. There is a delivery charge of $20 per order. What is your average cost per ball including delivery charges?

$22.20

Review of the basic stock list for your gift shop indicates that you need to reorder the following items: 12 glass vases @ $8.75 each, 6 silver plated vases @ $12.50 each, 12 glass paperweights @ $9.25 each. What is the total cost for all of the items?

$291

You employ 28 people making an average of $33,000 per year. You want to give every employee a 5% increase for next year. What will be the total increase in your company's annual payroll?

$46,200

You have planned purchases of $2,500. You have received orders that total $1,200, and you have ordered merchandise that totals $700. Calculate the open-to-buy amount.

$600

Compute the sum of the wages per week for the following three employees. Employee A worked 40 hours per week at a wage of $9.50 per hour. Employee B worked 38 hours per week at a wage of $8.25 per hour. Employee C worked 39 hours per week at a wage of $7.75 per hour.

$995.75

You end the summer with 132 baseball bats in inventory. You only average sales of 12 bats per week over the next 4 months. How long will your supply of bats last?

11 weeks

You are planning the fall sweater merchandise levels for your clothing store. Last year your sweater sales were down 25% from the previous season. The store had projected sales of 500 sweaters. Calculate the number of units the 25% sales decline represents.

125

Your employee can normally restock 200 items per hour. After 8 hours on the job, her rate decreases 10% per hour. At hour 12 in a long shift, how many items can she restock per hour?

131

If a business sells 50 units per week and has 150 units of inventory, then the business has:

21 days of inventory

After reviewing your model stock list you discover a changing sales pattern over the last several months on the most popular style of running shoe. The data note the following sales per month: May-120 units, June-165 units, July-180 units. Assuming your sales continue to grow at the rate they did between May and July, what will your sales be in August?

210

You are planning to purchase displays for your store which has 2,400 sq ft of selling space. Each display has a footprint of 10 ft x 4 ft. You want to leave 60% open space in your store for walking around. How many displays can you fit?

24

You have a budget of $1,440 per week for employees. Employees are paid $12 per hour and work 40 hours per week. Ignoring overhead, how many employees can you hire?

3

You begin the week with 20 units of milk. You purchase 40 units. Your ending inventory for the week is 30 units. How many units did you sell?

30

You have five employees. They work the following number of hours last week: 42, 26, 39,12, 55. What is the median number of hours worked?

39

Compute the stock turnover in dollars for a product that has sales of $6,000 and an average value of inventory investment of $1,500.

4

Your store has an average time of 90 seconds to process a sales transaction. There are three customers in line to check out. How much time will have passed when the last sales transaction is complete?

4.5 minutes

Compute the stock turnover for a product that has sales of 350 units and an average of 70 units in inventory.

5

If you sell 10 units a week and you have 50 units in inventory, then you have how many weeks of inventory?

5

It is a busy lunch hour. Two cashiers are working and there are eight total customers in line. The average time to process each sales transaction is 90 seconds. How much time will have passed when the last sales transaction is complete?

6 minutes

You ask an employee to string holiday lights around the perimeter of a circular room. The room is 30 feet in diameter. How many feet of lights will she need? (Round to the nearest foot.)

94

What is a "vendor"?

A business that sells merchandise to retail stores for resale

Which of the following might be considered an impulse purchase?

A candy bar

Which of the following is not part of the process of checking in stock?

Arranging goods on a display rack

How do managers deal with overstaffing problems?

By making full-time positions part-time

Which is NOT a symptom of an understaffed store?

Customers using credit cards

Which of the following is the responsibility of a vendor?

Delivering merchandise on time

What do employee compensation laws do?

Determine minimum wages, the 40-hour work week, and overtime pay

True or false: A smart store layout moves customers in and out as fast as possible

False

A grocery store would most likely use which type of layout?

Grid

What does stock turnover measure?

How often stock is sold during a given time period

Staple merchandise is usually placed where?

In a permanent location so customers know where to find it at each visit, often in the rear of the store

Where is a POP display often set up?

In the front of a store

In the context of retail, which of the following means the same as "stock"?

Inventory

Which of the following is NOT a necessary trait of a good employee?

Lives nearby

Who usually provides POP displays?

Manufacturers

Which of the following is NOT something a potential employee needs to know before being hired?

Must memorize the entire product line

What do equal opportunity employment laws do?

Protect employees from discrimination because of gender, race, religion, national origin, age, or disability

What does a store's buyer do?

Purchases merchandise to sell

What is just-in-time inventory control designed to do?

Reduce the amount of inventory a store must keep on hand

Which of the following is NOT a type of store layout?

Runway

What is a common way retailers measure store productivity?

Sales per square foot

What is a loop layout designed to make customers do?

See the most merchandise

An understaffed store may become a target for what?

Shoplifters

What is a store's "open-to-buy"?

The amount of money available for purchasing new inventory

What does a vendor's invoice typically list?

The items and quantities in a delivery

What is "staffing level"?

The number of workers assigned to jobs at a particular time

When offering a job to an applicant, what should the manager and new hire mutually agree upon?

The starting date

What is the primary purpose of fixtures?

To display merchandise

Long lines are an indication of what?

Understaffing

Which of the following is NOT a type of inventory system?

Virtual

A slushy representative convinces you to lease a machine for $200 per month. You discover that you are selling $900 per month of slushies at a margin of 30%. Are you making money on the machine?

Yes