FMM 225 Key Concepts and Formulas Billed Cost · Billed cost = List price minus trade discounts(s) · Billed cost = # Units purchased Book Inventory · Book inventory at retail = Physical inventory + Net retail purchases (Total merchandise handled) + Other stock additions Net sales Markdown differences Other deductions from stock · Book inventory at cost Opening retail book inventory (100% Cumulative markup % achieved on stock Purchases) Build/Percentage Change/Trend · Build/percentage change/trend = × 100 · Build/percentage change/trend = × 100 Cost (Markup Formulas) · Cost $ · Cost % = · Cost % · Cost % · Cost $ Cost of Goods Sold · Total cost of goods sold $ Billed cost $ + Inward freight charges $ + Workroom cost $ minus Cash discount $ · · Cost of goods sold $ Customer Returns and Allowances · Customer returns and allowances $ Total of all refunds or credits to the customer on individual items of merchandise $ Number of units actually returned · Customer returns and allowances % · Customer returns and allowances $ Gross sales $ Customer returns and allowances % and allowances $ Cumulative Markup % · Cumulative markup % 100 Department’s Net Sales · Department’s net sales % of total stores sales Gross Margin · Gross margin = Net sales · Gross margin $ = Gross margin % · Gross margin % = × 100 Gross Margin % · Gross margin % 100 · Gross margin % 100 · Gross margin % 100 Gross Sales · Gross sales Total of all prices charged to consumers of individual items Number of units actually sold Gross Sales $ Initial Markup % · Initial markup % · Initial markup % · Initial markup % Maintained Markup % · Maintained markup % 100 · Maintained markup % 100 · Maintained markup % Initial markup % Retail reduction % (100% Initial markup %) · Purchase balance Total planned Purchases to date (pieces, retail, cost, or markup %) Markdown · Markdown $ Original or present retail price $ New retail price $ · Markdown $ Percentage off Present retail price $ · Total markdown $ First total $ markdown Second total $ markdown · Planned Markdown $ N Markdown % · Markdown % · Markdown % · Markdown cancellation Higher retail $ Markdown price $ · New Markdown $ Gross markdown $ Markdown canellation$ Markup · Markup $ Retail $ Cost $ · Markup % on retail 100 or 100 · Markup % on retail 100 or 100 · Cumulative retail markup % on entire purchase · 100 or 100 Net Cost · Net cost $ = Billed cost $ Cash discount $ · Net cost $ = List price $ Trade discount(s) $ Cash discount $ Net Profit · Net profit = Net sales · Net operating profit = G · Net profit $ = Net profit $ · Net profit% = × 100 Net Sales · Net Sales $ = Gross sales $ Customer returns and allowances $ Operating Expenses · Operating expenses = D · Operating expenses $ = O · Operating expenses = × 100 Retail · Retail $ Cost $ Markup $ · Retail % Cost % Markup % · Retail $ or Retail Reduction % · Retail reduction % Sell Through Percentag.