Mathematics for Retail Buying

by Tepper, Bette K.; Godnick, Newton E.

• ISBN13: 9781563671951
• ISBN10: 1563671956
• Edition: 5th
• Format: Paperback
• Copyright: 2000-05-01
• Publisher: Fairchild Books

Summary

The top-selling introductory retailing textbook/workbook, through four highly successful editions, has been revised. This popular classic text meets the needs of students who will be directly or indirectly involved in the activities of merchandising and buying at the retail level. Tepper continues to delineate the essential concepts, practices, procedures, calculations, and interpretations of figures that relate to the many factors that produce profit. She also describes the place of computers in retailing, updates MOR figures, and adds case studies. Clear instructions, multiple practice problems, and current terminology and data make this the best retail buying math book available.

New to This edition:
-- A chapter describing the impact of computer technology on the growth of retailing, the cardinal principles of successful merchandising, the role of computers in retailing, the functions of buying, the circular nature of the merchandising process, and the responsibilities of the buyer
-- Provides a "road map" of the mathematical factors in the text

Table of Contents

List of Figures	ix
Preface	xi
Introduction	xix
Unit I MERCHANDISING FOR A PROFIT	1	(52)
Objectives and Key Terms	1	(1)
Defining the Basic Profit Factors	2	(21)
Elements of Each Basic Profit Factor	4	(7)
The Relationships Among the Basic Profit Factors	11	(2)
Practice Problems	13	(10)
Profit and Loss Statements	23	(14)
Skeletal Profit and Loss Statements	25	(2)
Final Profit and Loss Statements	27	(4)
Practice Problems	31	(6)
How to Increase Profits	37	(16)
Practice Problems for Review	41	(8)
Controlling Expenses	49	(1)
Analysis of Profit and Loss Statements	50	(1)
Merchandising for a Profit	51	(1)
Spreadsheet Analysis	52	(1)
Unit II RETAIL PRICING AND REPRICING OF MERCHANDISE	53	(56)
Objectives and Key Terms	53	(1)
Retail Pricing	54	(11)
The Structuring of Price Lines	54	(1)
Setting Individual Retail Prices and/or Price Lines	55	(1)
Advantages of Price Lining	55	(2)
Price Line Reports	57	(1)
Basic Pricing Factors and How They Relate to Each Other	58	(3)
Practice Problems	61	(4)
Markup	65	(16)
Basic Markup Equations	65	(1)
Markup Calculations Used in Buying Decisions	66	(5)
Practice Problems	71	(10)
Repricing of Merchandise	81	(28)
Markdowns	81	(8)
Employee Discounts	89	(1)
Additional Markup	90	(1)
Markup Cancellation	90	(1)
Price Change Procedures	90	(1)
The Relationship of Repricing to Profit	91	(2)
Practice Problems	93	(4)
Practice Problems for Review	97	(9)
Pricing in Merchandising	106	(2)
The Justification of the Pricing Strategy	108	(1)
Unit III THE RELATIONSHIP OF MARKUP TO PROFIT	109	(46)
Objectives and Key Terms	109	(1)
Types of Markup	110	(19)
Initial Markup	110	(5)
Cumulative Markup	115	(1)
Maintained Markup	116	(5)
Practice Problems	121	(8)
Averaging or Balancing Markup	129	(10)
Averaging Costs When Retail and MU% Are Known	130	(1)
Averaging Retail(s) When Costs and MU% Are Known	131	(2)
Averaging MU% When Retail and Planned MU% Are Known	133	(2)
Practice Problems	135	(4)
Limitations of the Markup Percentage as a Guide to Profits	139	(16)
Practice Problems for Review	141	(8)
Targeting Gross Profit	149	(2)
Assuring Favorable Gross Margins	151	(2)
Spreadsheet Analysis: Balancing of Markup	153	(2)
Unit IV THE RETAIL METHOD OF INVENTORY	155	(40)
Objectives and Key Terms	155	(2)
Explanation of the Retail Method of Inventory	157	(3)
General Procedures for Implementing the Retail Method of Inventory	160	(17)
Finding an Opening Book Inventory Figure	160	(1)
Maintaining a Perpetual Book Inventory Figure	160	(4)
Forms Used in the Retail Method of Inventory	164	(9)
Practice Problems	173	(4)
Shortages and Overages	177	(8)
Causes of Shortages and Overages	178	(1)
Calculating Shortages and Overages	178	(3)
Practice Problems	181	(4)
An Evaluation of the Retail Method of Inventory	185	(10)
The Advantages of the Retail Method of Inventory	185	(1)
The Limitations of the Retail Method of Inventory	185	(1)
Finding the Cost of Goods Sold and the Gross Margin with the Retail Method of Inventory Valuation	185	(2)
The Relationship of Profit of Inventory Valuation in the Retail Method of Inventory	187	(2)
Practice Problems for Review	189	(3)
Retail Method of Inventory	192	(1)
Controlling Shortages	193	(2)
Unit V DOLLAR PLANNING AND CONTROL	195	(78)
Objectives and Key Terms	195	(2)
Six-Month Seasonal Dollar Merchandise Plan	197	(46)
The Procedure of Dollar Planning by Element	197	(30)
Practice Problems	227	(16)
Open-to-Buy Control	243	(30)
Calculating Retail Open-to-Buy at the Beginning of a Month	250	(1)
Calculating Retail Open-to-Buy During the Month	250	(2)
Practice Problems	252	(3)
Practice Problems for Review	255	(12)
Open-to-Buy	267	(1)
Planning for Effective Buying	268	(3)
Spreadsheet Analysis: Dollar Planning and Control	271	(2)
Unit VI INVOICE MATHEMATICS: TERMS OF SALE	273	(44)
Objectives and Key Terms	273	(1)
Terms of Sale	274	(13)
Different Types of Discounts	274	(7)
Net Terms	281	(2)
Practice Problems	283	(4)
Dating	287	(12)
Different Types of Dating	288	(4)
Net Payment Dates	292	(3)
Practice Problems	295	(4)
Anticipation	299	(2)
Loading	301	(1)
Shipping Terms	302	(15)
Practice Problems	303	(6)
Practice Problems for Review	309	(4)
Terms of Sale	313	(2)
Resources Influenced by Terms of Sale	315	(2)
Glossary	317	(6)
Selected Answers	323	(4)
Reference Readings	327	(2)
Index	329

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