Course: Business Mathematics(MAT125) Name: Changi Min Date: 25.Oct.2011 25.

Note the following figures: Net Profit: 2.5% Gross margin: $7,000 Operating Expense 6,600 Find: (a) The cost of goods in dollars Net profit: $400.00 (b) The percentage of operating expenses. 400/6600=6.06% 27. The linen department has net sales of $80,000. There was a 2% loss, and the gross margin was 46%. Determine the operating expenses of the department and express the result in dollars as a percentage. Net sales: $80,000 Loss: 80,000 x 2%=$1,600 Net sales- loss= $78,400 Gross Margin: 80,000 x 46%=$36,800 Operating expenses: $78,400-$36,800=$41,600(53.06%) 29. Set up a skeletal statement that shows the following figures as dollars and as a percentage: Net profit: $5,500 Net profit: 2.5% Operating expenses: 47.5% Net Profit Operating Expense Gross Margin= 5,500 + 2612.50= $8,112.50 31. Using the following figures, set up a skeletal profit and loss statement that shows each factor and as a percentage. Net sales: $85,000 Net profit: 1,700 Cost of goods sold: 45,000

Net sales: $85,000(100%) -Cost of goods sold: $45,000(53%) Gross margin: $40,000(47%) -Operating expense: ($40,000-$17,000)=$38,300(45%) Net profit: $1,700(2%) 33. Discussion problem: In measuring gross margin performance, which is more significant: the dollar amount or the percentage figure? Why?

The profit figure could be phenomenally high or dismally low by industry standards,

depending on the dollar and sales volume of the department. Unless the figures for all other factors are available, it is impossible to determine which departmental operations excelled or faltered. The only meaningful way to compare departmental performances is to compare the respective results expressed as a percentage. 35. A retailer, contemplating the purchase of a small children's shop, found the previous owner had an inventory at cost of $30,000. For that period, this retailer was given the following figures: Sales: $60,000 Closing inventory, at cost: $33,000 New purchase, at cost: $40,000 Transportation charges: $500 What was the gross cost of merchandise sold? Total cost of goods sold: 30,000+33,000+500-33,000=$30,500 Gross Margin: $60,000- $30,500=$29,500 39. Construct a final profit and loss statement from the figures listed below and calculate the major factors as percentages and dollar amounts. Opening inventory: $74,200 Gross sales 248,000 Advertising 15,000 Misc. expenses 18,000 Purchases, at cost 120,000 Closing inventory 78,000 Customer returns 25,800 Salaries 26,000 Transportation charges 8,000 Rent 39,000 Cash discount 3% Profit Factors Income from sales Gross sales -Customer Returns & Allowances Net Sales Cost of Merchandise Sold Opening Inventory New net purchase +Inward transportation +Total cost of goods Total merchandise handled at cost -Closing inventory at cost Gross cost of goods sold -Cash discount Net cost of goods sold +Alternation & Workroom costs $74,200.00 $120,000.00 +$8,000.00 $128,000.00 $128,000.00 $202,200.00 -78,000.00 $124,200.00 -3%(3,726) $120,474.00 +$39,000.00 $248,000 -25,800 $222,200 100 Cost Retail %

Total cost of goods sold Gross Margin Operating Expenses Total direct expenses Total indirect expenses Total operating expenses Net profit

$159,474.00

-159,474.00 $62,726.00

71.77 28.23

$59,000.00 $59,000.00 $3,726.00 26.55 1.68