Mastering Retail Margins

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Questions and Answers

What is the formula to calculate the wholesale margin?

($30 Wholesale - $15 COGS) / $30 Wholesale

What is the formula to calculate the retailer's margin when they use the suggested retail price (SRP)?

($75 Retail - $30 Wholesale) / $75 Retail

What is the formula to calculate your retail margin when you sell direct-to-consumer (D2C)?

($75 Retail - $15 COGS) / $75 Retail

What is the cost of goods sold (COGS) for one dress shirt?

$15 Signup and view all the answers

What is the wholesale price of one dress shirt?

$30 Signup and view all the answers

What is the suggested retail price (SRP) of one dress shirt?

$75 Signup and view all the answers

What is the wholesale margin?

50% Signup and view all the answers

What is the retail margin when selling direct-to-consumer (D2C)?

80% Signup and view all the answers

Match the following terms with their correct formulas:

Wholesale Margin = ($30 Wholesale - $15 COGS) / $30 Wholesale Retail Margin (Retailer) = ($75 Retail - $30 Wholesale) / $75 Retail Retail Margin (D2C) = ($75 Retail - $15 COGS) / $75 Retail Gross Profit Margin (D2C) = 80% Signup and view all the answers

Match the following pricing strategies with their corresponding profit margins:

Wholesale Orders = 50% D2C Orders = 80% Signup and view all the answers

Match the following prices with their corresponding roles:

$15 = Cost of Goods Sold (COGS) for one dress shirt $30 = Wholesale Price of one dress shirt $75 = Suggested Retail Price (SRP) of one dress shirt Signup and view all the answers

Match the following terms with their correct definitions:

COGS = The cost to produce one unit of a product Wholesale Margin = The percentage of profit a manufacturer makes on a wholesale order Retail Margin = The percentage of profit a retailer makes on a retail order Gross Profit Margin = The percentage of profit a company makes on its products after subtracting the cost of goods sold (COGS) Signup and view all the answers

Match the following formulas with their corresponding calculations:

($30 Wholesale - $15 COGS) / $30 Wholesale = Wholesale Margin ($75 Retail - $30 Wholesale) / $75 Retail = Retail Margin (Retailer) ($75 Retail - $15 COGS) / $75 Retail = Retail Margin (D2C) Signup and view all the answers

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