Retail Business Assignment
Retail Business Assignment
Retail Business Assignment
a. Sales = $60,000
Expenses = $25,000
Profit goal = $8,000
= ($25,000+$8,000+0)/($60,000+0)
=55%
b. Expenses = 38%
Reductions = 10%
Cash discounts = 1%
Profit goal = 5%
= (0.38+0.10+0.05-0.01)/(1.00+0.1)
=47.27%
c. Sales = $185,000
Reductions = $12,000
Expenses = $53,000
Cash discounts = $18,000
Profit goal = $15,000
= ($53,000+$15,000+$12,000-$18,000)/($185,000+$12,000)
=31.47%
d. Profit goal = 7%
Reductions = 18%
Cash discounts = 4%
Expenses = 33%
= (0.33+0.07+0.18-0.04)/(1.00+0.18)
= 45.76%
2. Calculate the retail price for the following situations:
1. Situation One
Markdown in dollars= Original Retail- Sale price
=$50-$40
=$10
2. Second Situation
4. Calculate the off-retail percent that can be advertised for the following
situations:
b. Cost = $25
Initial markup = $25
Markdown = $5
c. Cost = $125
Initial markup = $120
Sales price = $230