ADDITIONAL PROJECTS
Retailing Management 10th Edition
RETAIL MATH PROBLEMS
Material related to these math problems is in Chapter 13
1. A store sold the following items for the day: 2 sweaters at $39, 16 pairs of jeans at
$59, 2 purses at $29 and 2 suits at $169. What are the gross sales for the day?
2×39=$78
2. Using the problem above, besides the gross sales, the store had customer returns and
allowances: 1 jean returned at $59, 2 skirts at $39. They also had to give a discount
of 10% on a $169 suit because it was soiled. What were the customer returns and
allowances for the day?
1@$59 =$59
3. The store wants to calculate the customer returns and allowances as a percentage of
sales. What is this percent?
4. Using the store above, what were the gross sales for the day?
5. The buyer wants to know her cost of inventory sold. She purchased the jeans at $19,
sweaters at $9, jeans at $27 and suits at $67. What was her cost of inventory sold on
this day?
ADDITIONAL PROJECTS
Retailing Management 10th Edition
32
6. What is the gross margin, using the number calculated above?
7. The direct expenses for the month included the following: $200 for advertising, $500
for salaries, and $200 in rent expenses for the month. What were the direct expenses
for the month? What were the direct expenses for the day, assuming a 31 day month?
8. Indirect expenses during the month included: $75 for water, $89 for electricity, $60
for insurance. What were the indirect expenses for the month? For the day, assuming
a 31 day month?
9. What would be the total operating costs in this problem for the day?
10. What is the profit for this store on this particular day?
Gross margin = $846 (calculated in number 6)
Operating expenses =$36.26
11. A buyer wants to calculate her profit for the month. She knows the following
information:
ADDITIONAL PROJECTS
Retailing Management 10th Edition
a. The store sold $34,600 worth of merchandise
b. Cost of merchandise sold (cost of inventory) was $15,890
c. The store had $600 in customer returns and allowances
d. Her operating expenses were $6,000
Calculate her profit (or loss) for the month
12. What is the gross margin if the store had net sales of $3,267 and cost of inventory
sold of $1346?
13. A store had indirect expenses for the month of $500 for advertising, $30 for security
monitoring, and $75 for insurance. What would the direct expenses be for a day
(when there are 30 days in the month?)
ADDITIONAL PROJECTS
Retailing Management 10th Edition
14. A buyer wants to know her mark-up on a purchase. She purchased 25 sweaters at $9
and will sell them for $25. She also purchased 45 pairs of jeans at $21 and will sell
them for $45. What is her total dollar markup in dollar and percent for this purchase?
Cost:
Another way to do this problem:
15. A buyer realized several sweaters were not selling well. As a result, she marked them
down from $58 to $38. There were 30 sweaters she marked down. What is the total
dollar markdown? What is the total dollar markdown in percent?
ADDITIONAL PROJECTS
Retailing Management 10th Edition
16. A store had average markdowns last year of 21%. The projected sales are $230,000.
Assuming she is calculating based on a seven month season, what is her planned
markdowns?
17. A store had sales of $203,562 for the year. Their average stock was $57,640. What
was their turnover for the year?
18. A buyer decides to use the weeks of supply method to develop her buying plan. Her
planned sales are $460,000 and her desired turnover is 4. What should her weeks of
supply be for the coming year?
19. A buyer has determined he desired level of stock per month is $12,800. she plans to
have sales of $5,600 for that month. What would her basic stock requirements be for
the month?
20. A buyer has planned purchases (or desired inventory) of $241,571. She has already
ordered $46,798. She has received $87,623 worth of merchandise. What is her
current open to buy?