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RMG 200 (25)
Final

Exam Study Sheet

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Department
Retail Management
Course
RMG 200
Professor
Brent Barr
Semester
Winter

Description
Income Statement 1) Inventory BOM + Purchased During Month EOM = Sold During Month (SDM) 2) 9 Box Square (Find Retail Price) 3) Psychological Pricing (.00, .49, .99) 4) Calculate Gross Sales and COGS (SDM X Retail & SDM X Cost) 5) Prepare Income Statement $ %of Gross Sales 11,699.87 NetSa le CR&A 1,829.90 Net Sales Gross CRA = 9,869.97 100 COGS 6,096.97 61.8 Gross Margin NetSales COGS = 38.2 3,773.62 Operating 5,500.00 55.7 Expenses NIBITDA -1,726.38 -17.5 Formulas Asset Turnover = Net Sales Total Assets Average Stock @Retail = Net Sales Stock Turnover [$2400003 = $80000] Capital Turnover = Net Sales (Retail $) Average Inventory ($) Cost of Goods Sold = 8 Sold $100DVD, @2% net 30, $10unit for transportation [$800+$80-$16 = $864] Cumulative Mark Up % = Mark Up $ of all goods on hand Retail $ of all good on hand Customer Returns & Allowances = Refunds [2 DVDs returned > CR&A = $498] Gross Margin = Net Sales Cost of Goods Sold [$1992 - $864 = $1128] Gross Margin % = Gross Margin Net Sales Gross Margin ROI = Gross Margin ($) Avg. Inventory ($) Gross Sales = Retail Price * Volume of Item [$249 for a DVD * Sold 10 = $2490] Maintained Markup % = Net Sales Initial COGS Net Sales Average Inventory = Retail BOM + EOM 2 Mark Up % on Retail Opposite of % [Retail 45 Cost 20.25 CostRetail = 45% MU%R is 55% Net Price w Discounts = Cost * Opp % of Discounts [((($115 * 0.7)* 0.8)* 0.85) = $54.74] Dscnt=30,20,15 Net Sales = Gross Sales CR&A [$2490 - $498 = $1992] Order Point = (Demand Day) * (Lead Time + Review Time) + Backup Stock Owners Equity = Assets Liabilities Rate of Stock Turnover = # Units sold Avg. Stock in Units Return on Investment % = Investment Profit Made Simple Moving Average = Sales of 3 mnths 3 [100+75+1253 = 100] Stock Turnover = Net Sales ($) Avg. Inventory Rtl ($) Definitions 2%10 net 30 2% discount if payment is received within 10 days. Payment is expected before the 30 calendar day. Capital Turnover Efficiency Cost of Goods Sold Cost of sold item incl. billed cost, transportation, alterations, minus discounts Customer Returns & Allowances Merch returned to stock as refund & Price reduction Gross Margin Amount of funds remaining to pay funds of business Gross Sales The entire dollar amount received for goods sold during a period OperatingNet Income Money left over after all costs are taken into account NIBITDA (Net income before interest, taxes, depreciation, and amortization) $ % (MU % (MU Rtl Cost) A Cost 100% + Mark B Up = Retail 100% C Positioning - Design and implementations of a retail mix to create an image of the retailers in the customers mind to its competitors Basic Stock list: Assortment plan for staple, non-seasonal merchandise. Indicates the desired inventory level for each sku Never out List: Key items in a model or basic stock list. The 20 in the 8020 rule. Required constant review Order point Point at which stock available should not go below or else stock will run out b4 next order arrives Chargeback Used by retailers when they deduct money from
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