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Date:
Math EXERCISES
Period:
Merchandising (Show all Work)
STAPLE YOUR PAPERS
1. Review of the basic stock list for your gift shop indicates that you need to reorder the following items: 12
glass vases @ $8.75 each, 6 silver plated vases @ $12.50 each, 12 glass paperweights @ $9.25 each, 6
glass candy dishes @ $14.25 each, and 18 glass candlesticks @ $7.75 each. What is the total cost for each
type of item? What is the total cost for all the items? The vendor offers a 2% discount for payment within
30 days. Assume that you will take advantage of this discount. Shipping is $14.95. What is the total amount
of this reorder?
2. You are updating the sales plan for your store for the upcoming holiday season. You usually plan for a 10%
increase in sales over the same time period last year. However, this year your area is experiencing an
economic downturn. You have determined that a realistic figure to plan for is a 6% sales increase. Using
the numbers below, compute the projected 6% sales increase for the first week of the season and total the
weekly sales, round to the nearest dollar.
Day
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Sunday
Weekly Sales
Last Year’s Sales
$3,145
$2,867
$3,028
$3,371
$4,645
$5,739
$5,674
$28,469
Projected Sales
3. After reviewing your model stock list you discover a changing sales pattern over the last three months on
the most popular style of running shoe. The data note the following sales per month: May–120 units, June–
165 units, July–180 units. Your normal stock level for this shoe is 200 units. You have missed a few sales
recently due to out- of-stock issues in popular sizes. The vendor for this national brand has just informed
you that they are planning a major advertising campaign for this style of running shoe over the next two
months. Calculate the average monthly increase in sales over the last two months and, based on these data,
determine what your inventory for this shoe should be over the next two months. You will need to explain
your rationale to support your projection.
4. You are planning the fall sweater merchandise levels for your clothing store. Last year your sweater sales
were down 25% from the previous season. The store had projected sales of 500 sweaters. Calculate the
number of units the 25% sales decline represents; then compute the total projected sweater sales with a
17% planned increase over last year.
5. Last month, sales in the following categories were: Promotional items ($1401 with returns of $214 and
discounts of $159), Staple items ($2306 with returns of $178), All other items ($2298 with returns of $56).
The total square footage of the selling space is 5,000 square feet. Compute the sales per square foot of
selling space.
6. Last year, total sales for your grocery store were $10,342 with returns of $214 and discounts of $599. The
linear feet of shelving in the store totals 575 linear feet. What are the sales per linear foot for the store?
7. You must make a decision about whether to lease or purchase fixtures for your new store. A vendor has
made you the following offers.
 Total cost of reconditioned fixtures: $6,500
 Total cost of new fixtures: $12,000
 Monthly cost of leasing fixtures: $200
You do not have any capital to invest in fixtures but your bank will give you a five-year loan at a 9% annual
interest rate. What makes the most economic sense over five years and why?
8. Your store has 350 linear feet of shelving and 1,500 square feet of selling space that holds merchandise on
racks and other freestanding fixtures. Net sales for the last quarter for each area are as follows. Month Total
Net Sales for 350 Linear Feet Total Net Sales for 1500 Square Feet
 January $4,200 $3,360
 February 3,300 2,930
 March 3,700 3,685
Compute the total net sales per linear foot and total net sales per square foot for each month and the average for
each area for the quarter.