1.
Use the following formulas to answer questions 1-3Retail $ - 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?
Explanation
The mark up $ for this transaction is $20. This can be calculated by subtracting the cost ($30) from the retail price ($50). The formula Retail $ - Cost $ = Mark Up $ is used to find the mark up amount.
2.
Calculate the Mark Up % on the sweater transaction if Stephanie paid $55 for the same sweater. Round to the nearest tenth of a percent.
Explanation
The mark-up percentage on the sweater transaction can be calculated by finding the difference between the selling price and the cost price, dividing it by the cost price, and then multiplying by 100. In this case, since Stephanie paid $55 for the sweater, and the mark-up percentage is given as 45.5%, it means that the selling price is 45.5% higher than the cost price. Therefore, the mark-up percentage is 45.5%.
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?
Explanation
The cost at which Kohl's would need to purchase the sweater is $26. This can be calculated by dividing the selling price ($50) by 1 plus the markup percentage (48%). So, $50 / (1 + 0.48) = $26.
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 tenth of a percent.
Explanation
The correct answer is 66.7%. This can be calculated by dividing the weekend sales by the total sales for the week and then multiplying by 100 to get the percentage. In this case, the weekend sales are 2,000 and the total sales for the week are 3,000. So, (2,000 / 3,000) * 100 = 66.7%.
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?
Explanation
The correct answer is 15%. The question asks for the Monday percent to total week sales if Tuesday thru Sunday sales were identical to last week. Since the sales on Tuesday thru Sunday were identical to last week, we can assume that each day contributed an equal percentage to the total week sales. Therefore, if Bob sold 300 glasses of lemonade on Monday, and the total week sales were the same as last week, the Monday sales would represent 15% of the total week sales.
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?
7.
What are Blue Sales?
8.
What is Blue BOH?
9.
What is Blue EOH?
10.
What is Red REC?
11.
What is Yellow EOH?
12.
What is the total for BOH?
Explanation
The total for BOH is 56,700 and 56,700. This means that the total amount for BOH is the sum of these two numbers, resulting in a total of 56,700,56700.
13.
What is the total for REC?
Explanation
The total for REC is 10,800 and 10,800.
14.
Use the formula below to answer questions 14-17
(Round answers to the nearest tenth of a percent)SELL THRU PERCENT (ST%) = SALES / (EOH + SALES)
What is the ST% for the Green Dress?
Explanation
The sell thru percent (ST%) for the Green Dress can be calculated using the formula provided. The sales for the Green Dress would be divided by the sum of the ending on-hand (EOH) quantity and the sales quantity. The answer options provided are different representations of the sell thru percent, rounded to the nearest tenth of a percent.
15.
What is the ST% for the Blue Dress?
Explanation
The correct answer is any of the options provided: 17.4%, 17.4, 17.39%, or 17.39. The question asks for the ST% (short for sales tax percentage) for the Blue Dress, and all four options provided represent the same value. The percentage can be written as either a decimal (17.4% = 0.174) or as a whole number (17.4). The inclusion of the decimal point and the percentage symbol does not change the value, so all four options are correct.
16.
What is the ST% for the Red Dress?
Explanation
The correct answer for this question is 10.1%, 10.1, 10.07%, 10.07. This means that the ST% (Sales Tax percentage) for the Red Dress is either 10.1% or 10.07%.
17.
What is the ST% for the Yellow Dress?
Explanation
The correct answer is 9.09%. The ST% (Sales Tax percentage) for the Yellow Dress is 9.09%.
18.
List two things the Dress Buyer could do to increase the Yellow Dress ST%
Correct Answer(s)
A. Lower the price to help increase sales
B. Cancel receipts in order to lower inventory
Explanation
Lowering the price of the Yellow Dress can attract more customers and increase sales. By offering a lower price, customers may perceive it as a good deal and be more likely to purchase the dress. Additionally, canceling receipts can help lower inventory levels. If there is excess inventory of the Yellow Dress, canceling receipts can prevent further accumulation and help manage inventory levels effectively.
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. This can be inferred from the given information that the expected sales tax percentage (ST%) for Total Dresses next week is 12%. Since the question asks for the number of dresses she is planning to sell, the correct answer is 7,080.
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. Therefore, the turnover is 3.75.
21.
Sales= 122,000 Avg. Inv.= 49,000
What is the Turnover?
Correct Answer
B. 2.49
Explanation
The turnover is calculated by dividing the sales by the average inventory. In this case, the sales are 122,000 and the average inventory is 49,000. Therefore, the turnover is 122,000/49,000 = 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
Explanation
The average inventory of Department A is $31,250 and the average inventory of Department B is $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 2.0, the buyer for Department B can accomplish this in two ways. Firstly, by increasing sales, more products will be sold within a given period, resulting in a higher turnover rate. Secondly, by decreasing the average inventory, the amount of inventory available for sale will be reduced, which in turn increases the turnover rate. Both of these methods contribute to achieving a TO 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 tenth of a percent.
Correct Answer(s)
14.8%
14.8
14.81%
14.81%
Explanation
The sales trend to LY can be calculated using the formula: % CHANGE LY = (TY SALES - LY SALES) / LY SALES. In this case, TY Sales is $15,500 and LY Sales is $13,500. Plugging these values into the formula, we get: % CHANGE LY = ($15,500 - $13,500) / $13,500 = $2000 / $13,500 = 0.148 = 14.8%. Therefore, the sales trend to LY is 14.8%.
25.
What is the sales trend to PL? Round to the nearest tenth of a percent.
Correct Answer(s)
19.2%
19.2
19.23%
19.23
Explanation
The sales trend to PL is 19.2%, 19.2, 19.23%, and 19.23. This means that the sales to PL have increased or decreased by approximately 19.2% or 19.23, depending on the context.
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 of $15,500 is lower than the LY Sales of $17,000, indicating a downward trend in sales. However, the PL Sales of $14,500 is lower than the TY Sales, meaning that the current sales are exceeding the planned sales by 6.9%.
27.
Complete the following sequences
1, 1, 2, 3, 5, 8, 13, 21, ?
Correct Answer
34
Explanation
The given sequence is formed by adding the previous two numbers to get the next number. Starting with 1 and 1, we add them to get 2. Then, we add 1 and 2 to get 3, and so on. Continuing this pattern, the next number in the sequence would be 21 + 13 = 34.
28.
10, -10, -29, -47, -64, -80, ?
Correct Answer
-95
Explanation
The given sequence follows a pattern where each term is obtained by subtracting consecutive odd numbers starting from 1. The first term, 10, is obtained by subtracting 1 from 11. The second term, -10, is obtained by subtracting 3 from 7. The third term, -29, is obtained by subtracting 5 from -24. This pattern continues, and the missing term is obtained by subtracting 7 from -88, resulting in -95.
29.
2, 3, 3, 5, 10, 13, 39, 43, ?
Correct Answer
172
Explanation
The given sequence follows a pattern where each number is obtained by multiplying the previous two numbers and then adding them together. Starting with 2 and 3, we get 2*3 + 3 = 9, then 3*9 + 3 = 30, and so on. Following this pattern, the missing number would be 43*39 + 43 = 172.
30.
2, 5, 10, 17, ?, 37, 50, 65
Correct Answer
26
Explanation
The given sequence follows a pattern where each number is obtained by adding consecutive odd numbers starting from 1. The first number is 2, then 2 + (1+1) = 5, then 5 + (3+1) = 10, then 10 + (5+1) = 17, and so on. Therefore, to find the missing number, we need to add (7+1) to the previous number in the sequence. Adding 8 to 17 gives us 25, not 26. Thus, the given answer of 26 is incorrect.
31.
10, 0, 9, 1, 8, 2, ?, 3
Correct Answer
7
Explanation
The given sequence follows a pattern where the numbers are arranged in pairs. The first number in each pair is decreasing by 1, starting from 10, while the second number in each pair is increasing by 1, starting from 0. So, the missing number should be the first number in the next pair, which would be 7.