Chapters 1 and 2 Buying and Retail Math Quizzes 1-5

The sweater buyer is placing an order for fall for the following sweaters: 10,000 stripe sweaters at a billed cost of $8.75 12,000 cable sweaters at a billed cost of $8.25 The buyer negotiated a 15% cost discount with the vendor and the shipping charges for the order were $890. Calculate the cost of goods sold for the order.

159415

calculate Gross Margin percentage __________________________________________ For the season, the accounting department forwarded to you the following information. Construct a P&L Statement from the following figures: Opening Inventory (Cost) $148,000 Advertising $ 30,000 Gross Sales $496,000 Misc. Expenses $ 36,000 Billed Costs $240,000 Closing Inventory (Cost) $156,000 Customer Returns $ 51,600 Selling Salaries $ 52,000 Freight Charges $ 16,000 Wrapping & Packing $ 39,000 Rent $ 40,000 Alterations & Workroom $ 2,000 Cash Discount 2%

44.8%

Keystone markup means?

50% markup based on retail price

For a men's pants buy, you will be spending $300,000 at retail. Orders for $105,000 at cost have been placed. The planned MU % is 58.0%. What is left in retail dollars for you to place?

50000

The shoe department had yearly net sales of $375,000. Sandals represented 1.4% of the total net sales. What net sales dollars were generated by the sandal classification?

5250

The infant's buyer has planned sales of $3,400,000 and retail reductions $1,632,000 and requires a gross margin of $1,075,000. What should be the initial markup percentage

53.8% initial markup % = gross margin $ + retail reduction $ / sales$ +retail reduction$ x 100

A store has a planned gross margin of 30% and retail reductions of 54%. What is the initial markup percentage?

54.5% initial markup % = gross margin % + retail reduction % / 100% + retail reduction %

The buyer for a fast fashion retail store wants to price tee shirts at $14.50. The cost the buyer has negotiated is $6.50. What is the markup percentage for the tee shirts?

55.17%

The handbag buyer took $66,080 in markdowns during the month of May. The total handbag net sales in May were $118,000. What was the markdown percentage for handbags in May?

56.00%

The towel buyer is buying the following items: 300 wash cloths at a cost of $2.10 with a retail price of $5.99, 270 hand towels at a cost of $3.00 with a retail price of $7.99, and 400 bath towels at a cost of $4.00 with a retail price of $9.99. What is the markup percentage for this order?

61.76%

The markup percentage for an item with a retail price of $250 and a cost of $90 is which of the following?

64.0%

The buyer is promoting all $59.00 Spiderman customes at $35.00. Please calculate markdown journalization for the customer and the retailer.

customer 40.6% , retailer 68.5 %

Profit and Loss statements can show the performance of :

department entire organization buyer

Comparative store sales are which of the following?

the store sales for the current time period compared to the previous time period for stores open at least one year

A buyer has sold 100 tee shirts at $24.00 and 250 tee shirts at $30.00. And 10 tee shirts priced $30 were returned for a full refund. The total gross sales are?

$9,600

Please calculate cost of goods. ---------------------------------- For the season, the accounting department forwarded to you the following information. Construct a P&L Statement from the following figures: Opening Inventory (Cost) $148,000 Advertising $ 30,000 Gross Sales $496,000 Misc. Expenses $ 36,000 Billed Costs $240,000 Closing Inventory (Cost) $156,000 Customer Returns $ 51,600 Selling Salaries $ 52,000 Freight Charges $ 16,000 Wrapping & Packing $ 39,000 Rent $ 40,000 Alterations & Workroom $ 2,000 Cash Discount 2%

$245,200

A buyer takes a markdown on shorts from $34.00 to $24.99. 400 pair of shorts were marked down. What is the total markdown for the shorts

$3,604

A buyer takes a markdown on swimwear cover-ups from $69.00 to $44.99 and sells 180 coverups. What is the total markdown for the cover-ups?

$4,321.80

The men's tie buyer is planning to promote all $59.00 ties at 30% off. What is the promotional price for the ties?

$41.30

A store has net sales of $100,000 and operating expenses of $40,000. If the cost of goods sold were $50,000, what was profit $ ?

$10,000

The buyer for RC Discount Stores wants to spend $252,000 for June receipts for shorts. The minimum number of shorts is 10,500, and the cumulative markup is 44.0%. What is the cost price for the shorts and the retail price that the buyer will need to sell the shorts for?

$13.44 cost, $24.00 retail

The shoe buyer is planning to run a sale on sneakers. The planned retail price is $89.99 and the planned markup percentage is 54.5%. What is the maximum cost price that the buyer can pay for the sneakers?

$19.77

The sportswear buyer purchases sweaters that cost $24.15 each. What is the minimum price at which these sweaters must be retailed in order to achieve a 65.0% markup?

$69.00

If WOS is too long or too high and merchandise will be in stock past the outdate set, that means the ST % is ____________ and a buyer should take a ____________ to increase sales and reduce_________

1) Slow 2) Markdown 3)Inventory

1) The retail value of total initial sales. 2)The amount of merchandise at the beginning of a period, counted and recorded at the current selling 3)The billed cost of merchandise purchased. It is the gross purchases minus returns and allowances to 4)Adjustments made to the cost of goods sold from paying bills in a specified time.

1)gross sales 2)opening inventory at retail 3)new Net purchases 4)cash discounts

The men's tie department net sales for the Spring season are $36,000 and total store's sales are $2,400,000. What is the net sales percentage for the men's tie department?

1.5%

Today is September 26. The Halloween merchandise "outdate" is the midnight of Halloween day. You had 180 Cruella costumes on September 19th. You sold 20 pieces this week and 15 pieces last week. What is your week of supply for last week and this week? please calculate build.

12, 8.25 , 33.3%

For the holiday department, the gift buyer purchased 4,800 holiday ornaments. The first week, the buyer sold 320 pcs. Calculate the weeks of supply and the sell through percentage.

15.0 WOS, 6.7% ST textbook 105 and 106 for formulas

Please find Net Profit $ value using below information. For the season, the accounting department forwarded to you the following information. Construct a P&L Statement from the following figures: Opening Inventory (Cost) $148,000 Advertising $ 30,000 Gross Sales $496,000 Misc. Expenses $ 36,000 Billed Costs $240,000 Closing Inventory (Cost) $156,000 Customer Returns $ 51,600 Selling Salaries $ 52,000 Freight Charges $ 16,000 Wrapping & Packing $ 39,000 Rent $ 40,000 Alterations & Workroom $ 2,000 Cash Discount 2%

2200

he jewelry buyer took a markdown on bracelets from $24.00 to $17.99. What is the markdown to the customer and the markdown journalized by the retailer?

25.0% to the customer, 33.4% to the retailer

Mark's Bicycle Store placed an order for 25 mountain bikes at a billed cost of $500 and 40 ten-speed bikes at a billed cost of $390. Mark negotiated a cash discount of 5%. Shipping charges for the order amounted to $1,440 and workroom costs incurred were $515. What is the total cost of goods sold for the order?

28650

Today is September 19th. The Halloween merchandise "outdate" is the midnight of Halloween day. If you have 180 Cruella costumes, how many units do you need to sell per week if you need to sell all the merchandise by outdate? what is your sell through ratio for that week?

30 units 16.6 % ST

To determine retail price, what is added to cost?

Answer: Cost of goods sold includes the actual cost of the merchandise plus transportation charges involved in getting the merchandise from the vendor to the store. Markup is added to the cost of goods to determine retail price. Answer: Markup

How do we use Gross Profit Calculations?

Compare stores to determine relative strengths, Compare stores to determine weaknesses, Predict if a business is losing money, Predict if a business is prosperous

A profit and loss statement is same as balance sheet

False

If income exceeds expenses, loss results.

False

Opening inventory figure is calculated by the cost value of the merchandise in stock at the beginning of the accounting period

False

Total merchandise handled is sum of merchandise at cost available for sale. Opening inventory at cost deducted from the cost of new net purchases and transportation charges.

False

If the retail price of an item is $60 and its cost is $25, what is the markup percentage?

Formulas: Retail price $ = Cost $ + Markup $ Retail price % = Cost % +markup % Retail price % always equals to %100 when calculating markups Retail $= Cost$ / (100% - Markup %) Answer: 58.3%

If the markup on retail price is 48% and the cost is $10, what will be the retail price?

Formulas: Retail price $ = Cost $ + Markup $ Retail price % = Cost % +markup % Retail price % always equals to %100 when calculating markups Retail $= Cost$ / (100% - Markup %) Answer: $19.23

"How can a buyer maximize gross margin?"

Increase sales and decrease cost of goods sold

These expenses would exist whether a department is added or discontinued

Indirect expenses

Which of the following is not an advantage of a price lining strategy?

Makes stock control more difficult

Any reduction to a retail price on an item or group of items is called

Markdown

Markup is a quantitative performance objective against which buyers can be evaluated. Markup is defined as the difference between

Merchandise cost and its selling price

Which statement is true?

Most stores use the retail method of calculating markup

Which of the following terms indicates how much merchandise has been sold in dollars, what is actually collected from customers?

Net Sales

Which factor does not affect the cost of goods sold?

Operating expenses

This is a temporary markdown that buyers use for a limited amount of time to drive sales.

Point-of-sale markdown

Pricing of product is dependent on which of the following factors?

Retail format Cost of the goods Gross margin and profit goals Competitor's pricing Store's image

This is the factor that tells a buyer how fast or slow merchandise is selling.

Sell through percentage

Gross margin results from ?

Subtracting cost of goods from net sales

All percentages in the profit and lost statement are a factor of net sales.

True

Everyday low price (EDLP), everyday value price (EDVP), and everyday value (EDV) are pricing strategies used by retailers to provide a lower value price to the consumer.

True

Keystoning is technique used by some small retailers to calculate retail price by doubling the cost of merchandise.

True

When are additional markups more likely to occur?

When wholesale prices increase

A store has sales of $95000. The planned sales was $105000 for that year. What is the comparison (build / trend) for this store?

negative 9.5%