1 / 13

Advanced Fashion: Standard 7 Merchandising Math

Advanced Fashion: Standard 7 Merchandising Math. Created by: Kris Caldwell Timpanogos High School. Types of Financial Records. Ledger: A book or computer program containing ongoing accounts of a company Accounts: Records of debits (subtractions of money) and credits (additions of money).

jogata
Download Presentation

Advanced Fashion: Standard 7 Merchandising Math

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Advanced Fashion: Standard 7Merchandising Math Created by: Kris Caldwell Timpanogos High School

  2. Types of Financial Records • Ledger: A book or computer program containing ongoing accounts of a company • Accounts: Records of debits (subtractions of money) and credits (additions of money)

  3. Financial Records and Forms Operating Statement: (also called an income statement) A summary of the financial results of the firm’s operations over a specified period of time. Cost of Goods Sold (COGS): The dollar amount spent on goods that have been sold to customers during the period. Gross Margin: The sum of money available to cover expenses and generate a profit. Figured: Total Sales – COGS= Gross Margin

  4. Financial Records and Forms • Net Profit: Resulting positive number after expenses have been deducted from the gross margin figure. • Profit Margin: Ratio that measures profit as a percentage of net sales; return on sales (ROS)

  5. Sample Basic Operating (Income Statement)

  6. Terms to know: • Fixed costs: Overhead expenses that remain the same regardless of sales volume. • Variable costs: Expenses that increase or decrease with the volume of sales or production. • Odd-figure Pricing: The retail pricing of merchandise a few cents less than a dollar denomination. • Loss leader: Low-priced articles on which stores make little or no profit because of lowering the price for promotional reasons.

  7. Terms to know: • Initial markup: The difference between merchandise cost and the selling price originally placed on merchandise. • Keystone markup: Doubling the cost price to arrive at the retail price. • Maintained markup: The difference between gross merchandise cost and the net selling price of merchandise; the initial markup minus all retail markdowns or other reductions

  8. Markups • Markup: The amount added to the cost of merchandise to determine the selling price. • Calculating Markup: There are 2 methods for calculating markup; markup percent of cost (markup on cost) or markup percent of selling price (markup on retail). Both are based on percentage.

  9. Markup Percent of Cost Markup % of cost = dollar markup cost cost (Dollar markup cost is retail price minus cost)

  10. Markup Percent of Selling Price Markup % of Selling Price = Dollar markup selling price

  11. Markdowns • Markdown: The difference between the previously marked selling price of an item and the reduced selling price. • Calculated as either a percent of the original ticketed price or a percent of the marked-down selling price.

  12. Percent of the Original Ticketed Price Ticket price x Markdown %= Markdown Ticket price – Markdown = Selling Price

  13. Percent of the Marked-Down Selling Price Markdown percent on net sales= Total $ markdowns Total Net Sales

More Related