Common Sales Computations
Skill Set: Selling
TOPIC OR UNIT OF STUDY
Common sales computations
CONTENT STANDARD(S) AND OBJECTIVE(S)
Students will
 participate in procedures associated with the handling of cash (making change, preparing and
closing a cash drawer).
 compute taxes, discounts, net sales, and profit.
 recognize the different types of sales transactions.
 prepare a purchase order and invoice.
 compute shipping costs.
 discover methods of loss prevention.
INTRODUCTION
We will review common sales computations used in business. In class, students will practice handling
cash (monopoly/play $), making change and computing taxes, discount along with net sales and profit.
In teams of 2, taking turns as the seller and buyer, students will have cost per item, take into
consideration discounts (loyalty cards), taxes and correctly provide change to the customer. Write
down the information of each of the transactions and submit to the instructor in an Excel report that
includes the unit cost, retail cost, discounts, taxes, net sales and profit. Students will participate in a
class discussion on handling cash.
Purchase orders are documents that a buyer gives a seller detailing items they want to purchase.
Invoices are what a seller provides a buyer – (sometimes referred to as a bill) by accepting an invoice the
buyer is agreeing to the purchase. Students will submit to the instructor a purchase order and invoice
example based on the transactions in class (as both a buyer and a seller).
Students will individually research at least 2 methods of loss prevention and post their findings (and link
to the information) in the class blog. Read peer posts and respond thoughtfully to at least one other
peer (more than I agree).
ESSENTIAL QUESTION
What are some of the common sale computations used in businesses?
INTEGRATION OF ACADEMICS, TECHNOLOGY, ENTREPRENEURSHIP
Academics: Upon completion of the activities, the above referenced CSOs will be met.
Technology: Students will utilize the Internet to research methods of loss prevention. Students will
utilize Microsoft Word and/or Excel to create purchase order and invoice.
Entrepreneurship: Students will practice common sales computation used in businesses and generating
purchase order and invoice documents.
STUDENT INVOLVEMENT IN PLANNING PROCESS
Students will take turns role playing handling cash with a peer and write down the sales information –
cost, discounts, taxes and report on the net sales and profit of the transaction. Students will individually
submit to the instructor a purchase order and invoice example based on the transactions in class.
Students will individually research and post in the class blog at least 2 methods of loss prevention and
respond thoughtfully to other peer’s findings.
Page 1 of 6
TASK(S)
Day 1:
Student will:
 In teams of 2, taking turns as the seller and buyer, students will have cost per item, take into
consideration discounts (loyalty cards), taxes and correctly provide change to the customer.
 Use a calculator to make sure correct change was given and provided (check your peers).
 Write down the information of each of the transactions and submit to the instructor in an Excel
report that includes the unit cost, retail cost, discounts, taxes, net sales and profit. Students will
participate in a class discussion on handling cash.
Day 2:
Student will:
 Individually choose a template from Microsoft Word for a purchase order and invoice, complete
documents from cash handling transactions the prior day (both as buyer and seller).
 Add shipping costs (based on estimated weight of items), determine shipping method (UPS,
USPS, FedEx – research costs per shipping estimate) and delivery date– complete purchase
order as to quantity, unit description, unit price and total costs, including sales tax – WV’s sales
tax is 6%.
 Submit your Invoice and Purchase Order to the Instructor via email.
Day 3:
Student will:
 Individually research at least 2 methods of loss prevention and post their findings (and link to
the information) in the class blog.
 Read peer posts
 Respond thoughtfully to at least one other peer (more than I agree).
RESOURCES
Monopoly/play $
Play register (if available)
Calculator
Microsoft Word/Excel
Internet
TECHNOLOGY USE
Calculator
Microsoft Word/Excel
Internet
EVALUATION
 Students will be evaluated on their correct handling of money taking into consideration taxes,
discounts, etc. Their partners will calculate using a hand held calculator if their peer is giving
them the correct change. A class discussion will be held on the comfort of students to handle
cash transactions.
 Students will be assessed on their submissions of a purchase order and invoice based on their
class transactions. Rubrics will be provided.
 Students will be evaluated on their findings in the class blog on loss prevention. Rubric
provided. Misunderstood or under developed ideas will be re-taught/reviewed in a class
discussion.
TIMELINE
2 – 3 class periods of 45 minutes each
Page 2 of 6
CONCLUSION
Do I feel confident I could answer common sale computations?
Page 3 of 6
Handling Cash Transactions
Business: Happy Apple Pie Co., school address
Customer: Your name, school address
Can purchase a mix of 3 of these items (do NOT choose the same mix as your partner):
Quantity
100
200
50
100
100
50
Item number
(for tracking purposes)
123
124
125
126
127
128
Items for sale
3 lb. apples
3 lb. sugar
8 oz. cinnamon
5 lb. flour
1 dozen eggs (24 oz)
1 bottle vanilla extract (4
oz)
Unit cost
(to seller)
$ 1.29
$0.80
$0.60
$0.75
$1.09
$2.00
Retail price
(to buyer)
$2.39
$3.19
$1.99
$1.97
$2.86
$4.29
Hint: 16 oz (ounces) = 1 lb (pound)
*Frequent buyer discount card = 15% off order
*One time new customer discount = 5% off order (cannot use both discounts)
WV Sales Tax = 6%
Shipping info:
Fed Ex: https://www.fedex.com/ratefinder/home?cc=US&language=en
UPS: http://www.ups.com/media/en/standard_list_rates.pdf (begin looking at pg. 26)
USPS: http://postcalc.usps.gov/
Use a template in Microsoft Word to create a Purchase Order and Invoice based on your
transactions. (In Microsoft Word 2007/2010: choose New – Under Templates – choose Invoices
– Purchase Order and Invoices are found there).
Page 4 of 6
Checklist of seller/buyer activity (10 points available)






In teams of 2, taking turns as the seller and buyer
As the seller take into consideration discounts (loyalty cards), taxes and correctly provide
change to the customer.
As the buyer purchase at least 3 of the items available, provide any loyalty cards or other
discounts, use a calculator to make sure correct change was given and provided (check your
peers).
Write down the information of each of the transactions. (as buyer and seller)
Submit to the instructor in an Excel report that includes the unit cost, retail cost, discounts,
taxes, net sales and profit.
Participate in a class discussion on handling cash.
Checklist of purchase order and invoice (20 points possible)

Choose a template from Microsoft Word for a purchase order and invoice, complete documents
from cash handling transactions the prior day (both as buyer and seller).
 Include in the documents:
o Shipping costs (based on estimated weight of items)
o Shipping method (UPS, USPS, FedEx – research costs per shipping estimate)
o Delivery date
o Quantity sold (or to be purchased)
o Unit description
o Unit price
o Total costs
o Sales tax – WV’s sales tax is 6%.
 Insert your name, class and date in the header in both the Invoice and Purchase Order.
 Submit your Invoice and Purchase Order to the Instructor via email.
Page 5 of 6
Class Blog Rubric (10 points)
Category
Credit
No credit
(0 points)
Original blog post
Provide at least 2 methods of
No post or limited input.
loss prevention and post your
findings (and link to the
information).
Response
Grammar/Spelling
(4-8 points)
Read other teams’/peer’s
posts. Thoughtfully and
respectfully responded to at
least one other team’s or
peer’s post on customer
experience/understanding
(more than I agree).
(1 point)
No more than 1 obvious
grammar and/or spelling
error(s) in the response.
(1 point)
Page 6 of 6
No response to other peer or
little more than I agree and/or
disrespectfully presented.
Multiple grammatical or
spelling errors.