Retail Mathematics
Retail Maths _ PART 1Some basic factors that directly affects profits of a retail operations ::
1 Operating Income:
Gross Sales = The total retail price charged on an item X No. of units actually sold
Net sales = Gross sales – Customer returns & allowance
Customer returns or allowance % = Rs. Cust. Returns allowance X 100
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(Gross sales)
(Gross sales)
2.Total cost of merchandise :
Cost of merchandise = Billed cost + Inward freight & transportation charge + Alteration & work room charges – Cash discount
3.Operating expenses:
Operating expenses = Direct + Indirect expenses
Cost of merchandise sold % = Cost of goods sold X 100
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Cost of merchandise = Billed cost + Inward freight & transportation charge + Alteration & work room charges – Cash discount
3.Operating expenses:
Operating expenses = Direct + Indirect expenses
Cost of merchandise sold % = Cost of goods sold X 100
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(Net sales )
Gross margin % = Gross margin X 100
Gross margin % = Gross margin X 100
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(Net sales)
(Net sales)
Net profit % = Net profit X 100
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(Net sales)
More Later !
( items in the denominator ( in brackets) have to move to the right sorry can't handle that ! )
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