AMD 376: Merchandising, Planning, & Control Notes 2
AMD 376: Merchandising, Planning, & Control Notes 2 AMD 376
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This 2 page Class Notes was uploaded by Clare Schubert on Monday February 1, 2016. The Class Notes belongs to AMD 376 at Iowa State University taught by Amy Dorie in Spring 2016. Since its upload, it has received 14 views. For similar materials see Merchandising Planning, & Control in General at Iowa State University.
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Date Created: 02/01/16
Expense % = $ Expenses / $ Net Sales Gross Margin % = $ Gross Margin / Complete a Skeletal Profit and Loss Statement: Net Sales $470,720 (100%) COGS ($265,292) Gross margin ($205,328) 43. 62% Expenses ($216,155) Profit (Loss) ($10,826) -2.30% GM=GM% X NS$ NS-COGS = GM P = P% x NS $ GM – E = P -> E% = 216,155/470720 Apple Inc. Revenues $233,715 100% COGS ($139,995) 59.9% Gross Margin ($ 93,720) 40.1% Expenses ($40,326) 17.25% Profit $53,394 22.85% COGS = $233,715 – 93,720 = $139,995 Gross Margin = $233,715 X 40.1% = $93,720 Expenses = $93,720 - $53,394 = $53,394 LVMH Net Sales ($33,338) 100% COGS ($11,872) 35.61% Gross Margin $21,468 64.39% Expenses $15,749 47.24% Profit ($5,719) 17.15% Net Sales = COGS = Profit = Gross Sales = Net Sales + Customer Returns Net Sales = Gross Sales – Customer Returns Customer Returns % = $ Returns / $ Gross Sales $ Gross Sales = $ Net Sales / (100% - Customer Returns%) Example: Gross Sales ($583,260) Customer Returns $50,452 (8.65%) Net Sales $532,808 100% Gross Sales = $532,808 + $50,452 = $583,260 Direct Expenses = result of the operation of one specific department and wouldn’t exist if department was eliminated Indirect Expense = benefit the store as a whole and would continue even if a particular department were discontinued Contribution = or controllable margin is the amount left after direct expenses are subtracted from gross margin GMROI (Gross Margin Return On Inventory) = Gross margin $ / Average Inventory at Cost Calculate: Net Sales $550,110 Gross Margin 38% Average Inventory at Cost $66,180 Gross Margin = $550,110 X 38% = $209,041.80 GMROI = $209,041.80 / $66,180 = 3.16
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