2.11 Marketing Math Objective: Process the sale to complete the exchange.
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Transcript of 2.11 Marketing Math Objective: Process the sale to complete the exchange.
2.11 Marketing Math
Objective: Process the sale to complete the exchange.
Making Change
Simple Math!Subtraction
Bill Total = $18.95Customer has $20.00How Much Change?
Extensions
MultiplicationMultiply the number of units by the price per unit
12 Cans of Soda$0.50 per can12 x $0.50 = $6.00
John Smith
7150 E. 24th Street
Yuma, AZ 85365
04/08/11 6 38760
3
2
2
3 Halters
Belts
Pair of Boots
Shirts $29.95
36.95
125.00
37.95
$89.95
$73.90
$250.00
$113.85
$527.60
Extensions and Subtotal
Methods of payment for a sale
Cash or check SalesCredit CardDebit CardLayawayOn ApprovalCash On Delivery
Cash or Check
• 23% of sales are cash• 4.3% of sales are check
• Cash is King:• Some stores will not accept checks• All stores have check policies
• License or ID • Phone Number• Bounced check charges
Credit Card vs. Debit Card
Debit Card: Cheaper than Credit CardFlat Rate of $0.59
Faster than CheckMoney is transferred immediately
Some offer debit card discount
Credit Card vs. Debit Card
Credit CardBusinesses pay a credit card fee
1.79% to 3.25% of the transaction
Stores may set charging limits
Other Methods of PaymentCash-on-Delivery : (COD)Ex: Pizza Delivery
Lay-Away:Merchandise removed from stockCustomer leaves a deposit and makes payments
Merchandise received when paid off
On Approval:Customer takes merchandise on store credit
Charges Affecting the Sale
DiscountsAllowancesSales TaxShipping Charges
DiscountsReduction in sales pricesCalculated before sales tax
Special SalesCouponsCustomer Loyalty DiscountsGroup DiscountsBulk Sales Discounts
Calculating the Discount
$30 item with a 22% discount
Multiply price by the discount percentage
$30 x 22% = $6.60 (Total Discount)
Subtract the total discount from the price
$30 - $6.60 = $23.40
Allowances
A partial return of the sales price
Usually occurs when merchandise is defective
Calculated Like a Discount
Sales Tax
Sales Tax: A percentage fee placed by the government on the sale of goods and services.
Sales Taxes are different per state and county
Alaska, New Hampshire, Delaware, & Oregon = 0%Arizona is highest: 11.75%
North Carolina =Mecklenburg County =
Calculating Sales Tax
Multiply subtotal by the sales tax rate
$25 x 7.25% = $1.81
Add sales tax to the subtotal for sale total
$25 + $1.81 = $26.81
John Smith
7150 E. 24th Street
Yuma, AZ 85365
04/08/11 6 38760
3
2
2
3 Halters
Belts
Pair of Boots
Shirts $29.95
36.95
125.00
37.95
$89.95
$73.90
$250.00
$113.85
$527.60
$31.66
$559.26
$527.60 +$31.66
$559.26.066%
$527.60 *.066
$31.66
Bill total with tax included
Shipping ChargesCharges for delivery of a productShipping charges are not subject to tax.
Shipping Charges are often paid by the consumer.
Shipping charges are calculated based on:Weight Item PriceGeographic ZonesLength of time to deliverCombination of 2 or more
Shipping
Shipping charges are not subject to tax.
Shipping Charges are often paid by the consumer.
Shipping charges are calculated based on:Weight Item PriceGeographic ZonesCombination of 2 or more
How do charges and discounts affect the price of purchases?
Increase the cost of items Cover credit card charges and frequent discounts
Retailers pass the charges or discount down to the customerAs an additional chargeRaise the original price of the item
After the Transaction
ReturnsMerchandise brought back for a cash refund or credit Full payment returned
ExchangesMerchandise returned for something else
Even exchange: occurs when an item is exchanged for the exact same thing
Uneven Exchange: money may be owed or returned
Some stores only offer in-store credit & not cash back
Technology in calculations
Speeds up processNo “in your head” or hand calculations
POS (point of sale) Computer make all of the calculations
Less time taken to double check figures.