Retail Industry1992 to 2013 TrendsRetail & EthicsDr. Ayad's Research InterestsExcerpt from The Inclusive LeaderDr. Ayad's QuotesAbout Dr. AyadContact MeRecommendationsPhotos
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Retail Math

Selling Price or Retail Price ($) = Cost of Goods ($) + Markup ($)

Gross Margin ($) = Total Sales ($) – Cost of Goods ($)
Margin % = (Retail Price - Cost) ÷ Retail Price
Contribution Margin ($) = Total Sales ($) - Variable Expenses ($)
Sell-Through % = Units Sold ÷ Units Received
Average Ticket ($) = Total Sales ÷ Total number of Customers
% Increase/Decrease = Difference between two Figures ÷ Previous Figure
Markup $ = Retail Price ($) – Cost ($)
Markup % = Markup Amount ($) ÷ Retail Price ($)
Total Expenses ($) = Fixed Expenses ($) + Variable Expenses ($)
Variable Expenses ($) = Expenses that respond directly and proportionately to changes in retail activities, such as cost of labor, commissions, utilities, inventory, supplies, packaging, mailing, shipping, etc.
Fixed Expenses ($) = Expenses that does not change with retail activities such as rent, payments on loans, insurance, etc.
Profit ($) = Gross Margin ($) – Total Expenses ($)
Basis Points = One basis point equals 0.01% OR one could say 1% = 100 Basis Points

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Retail Industry1992 to 2013 TrendsRetail & EthicsDr. Ayad's Research InterestsExcerpt from The Inclusive LeaderDr. Ayad's QuotesAbout Dr. AyadContact MeRecommendationsPhotos