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Retail Buying Math Practice from Chapter 2

1. An item cost a retailer $62.12. If it sold for $125.00, what was the markup percentage? 50.3%

2. An item retails for $150.00. If it cost the store $71.25, what was the markup percentage? 52.5%

3. 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? 50.89%

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? 42.86%

5. 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? 51.16%

6. 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? 53.75%

7. 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? 54.63%

8. 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? 50.87%​

 

Retail Buying Math Practice from Chapter 3

1. 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?

Profit: $28,988

2. Based on the income profit/loss statement that follows, calculate the percentage that each element represents.

Sales $567,100 100%

Cost of Goods Sold $251,000 49.03%

Gross Margin $316,100 50.97%

Operating Expenses $285,500 37.53%

Profit/Loss $ 30,600 13.43%

3. 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.

Gross Margin: $60,000

Profit: -$10,000

4. Based on the information that follows, calculate the components of and income/profit or loss statement as a dollar amount and as a percentage.

Sales $250,000 100%

Cost of Goods Sold $118,500 47.2%

Operating Expenses $105,200 52.8%

Gross Margin $132,000 42.08%

Profit/Loss $26,800 10.72%

5. Based on the information that follows, calculate the components of and income/profit or loss statement as a dollar amount and as a percentage.

Sales $600,253 100%

Cost of Goods Sold $301,112 50.16%

Operating Expenses $256,825 49.84%

Gross Margin $299,141 42.79%

Profit/Loss $42,316 7.05%
 

Markup Worksheet Assignment from Module 14

1. Reference Slide 6: For example, a shirt was priced at $30. The shirt cost the buyer $10. 

What was the $MU? $20.00

What was the MU%? 66.7%

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2. Reference Slide 11: A buyer is planning the initial MU with planned expenses of $70,000, planned profit of $10,000, planned reductions of $5,000, and planned sales of $300,000. 

What should the initial MU % be? 27.87%

 

3. Reference Slide 15: On October 1 the buyer received blouses that cost the retailer $30,000 and the retail price was $40,000. On October 7 the retailer received blouses that cost $10,000 and would retail for $20,000. What is the cumulative $MU? $20,000.00

What is the cumulative %MU? 33.3%

 

4. Calculate the maintained MU if the actual expenses were $60,000, the actual profit was $10,000, and the actual sales were $190,000. 

Maintained MU%? 36.8%

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5. Lily goes into the store and sees a dress priced at $40.00. The buyer paid $10 for the dress. 

What was the dollar markup? $30.00 

What was the percentage markup? 75%

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6. A shirt retails for $90. The markup at this store is commonly 85%. 

What was the dollar markup? $13.50

What did the shirt cost the buyer? $76.50

 

7. A buyer has current inventory that she paid $70,000 for. It retails for $80,000. She made purchases today that cost $10,000 and will retail for $30,000. 

What is the cumulative dollar MU? $30,000.00

What is the cumulative MU%? 27.3%

 

8. A buyer has expenses of $110,000 and has made a profit of $40,000. She has been able to maintain a markup of 60%. 

What have her sales been? $90,000.00

 

9. A buyer’s planned expenses are $65,000, planned profit is $15,000 and planned reductions are $20,000. His planned sales are $200,000. 

What is the initial MU%? 45.5%

 

10. If a shirt costs the retailer $40 and it sold for $100, what was the markup percentage?

MU%? 60%

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