# Test Your Knowledge – Retail Math Quiz

**(Answers are at the Bottom of the Page)**

1.) **What are the 6 Pillars of Retail?**

2.) A product’s retail price is $79.95 and it costs $42.00. **What is the Gross Margin of this product?**

3.) **What is the Mark-up for the same product?**

4.) A store’s annual sales are $3,560,250. Monthly inventory is as follows:

Based on these numbers, **calculate the inventory turns for the year**.

Hint: Calculate Average Inventory first.

5.) Utilizing the already calculated Gross Margin, Sales and Average Inventory, **find out what the GMROII would be** for this store, for the same year.

6.) We want to utilize GMROF to compare two display fixtures of different design:

Fixture 1: Oval shape with merchandised area of 7.65 square feet. Sales generated from this fixture in one month are $3,465 and Gross Margin on those sales is 43.5%.

Fixture 2: Rectangular shape with merchandised area of 7.20 square feet. Sales generated from this fixture in one month are $2,987 and Gross Margin on those sales is 45.6%.

**Which fixture is more profitable?**

7.) We want to compare the contribution of staff between two stores. Here is the data we have:

Store |
Sales This Month |
Gross Margin |
Total Payroll |

1 | $270,500 | 44.7% | $44,895 |

2 | $343,750 | 42.5% | $55,280 |

**Which store’s staff is contributing more?**

8.) Here is some store data collected through POS and Traffic Counters:

# of people who entered the store – 1,362

# of sales tickets generated – 398

Total number of units sold – 724

Total payroll for the same period – $3,842

Total sales generated – $34,548

**Calculate the following:**

1. Conversion Rate

2. Average Sales per Transaction

3. Units per Transaction

4. Wage Cost

9.) Here is the overall company data for the 3rd quarter sales:

Month |
Sales |
Last Year |
%Achieved |
Target |
%Achieved |

July | $2,074 | $1,926 | $2,022 | ||

August | $1,866 | $1,792 | $1,882 | ||

September | $2,672 | $2,503 | $2,628 | ||

Total Q3 | $6,612 | $6,221 | $6,532 |

**Calculate this year’s performance** compared to Last Year and compared to Target for each month and for the 3rd Quarter.

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**Answers to the Retail Math Test**

**1.)** People, Place, Product, Price, Promotion, Pixel

**2.)** 47.46%

**3.)** 90.35%

**4.)** 2.66 turns (Avg. inventory is $1,336,770)

**5.)** 127.2%

**6.)** Fixture 1 is more profitable. (GMROF for fixture 1 is 197; GMROF for fixture 2 is 189)

**7.)** Store #1 is contributing more. (GMROL for Store 1 is 269.33; GMROL for Store 2 is 264.28)

**8.)** Conversion Rate is 29.2%, Average Sales per Transaction is $86.80, Units per Transaction are 1.82, Wage Cost is 11.12%

**9.)** July – 107.7% of LY, 102.6% of Target

August – 104.1% of LY, 99.1% of Target

September – 106.8% of LY, 101.7% of Target

Total Q3 – 106.2% of LY, 101.2% of Target

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