SUPERMARKET MANAGEMENT 101 GROSS PROFIT QUIZ (Exhibit #4)
This quiz is comprised of twenty-five questions requiring an understanding of GROSS PROFIT management. The purpose of this quiz is to identify your level of understanding with regard to GROSS PROFIT. Please show all work for any questions requiring calculations. _________________________________________________________________ Please use the following list of words to complete the next four questions. Retail
1. _________ measures the volume of product sold.
2. Gross profit is the difference between the _______ and the ___________ of an item.
3. Sometimes it is more meaningful to measure financial data as a ____________.
4. The difference between the actual gross profit and the budgeted gross profit (goal) is defined as the _____________. _________________________________________________________________ Please circle the correct answer for the next four questions. 5. Increasing sales is the best method for increasing your departmentâ€™s gross profit percentage. True False
6. Cost of goods represents what we pay a vendor for products.
7. Shrink is primarily a measurement of lost sales.
8. Sales equal $10,000. Gross profit dollars equal $2,750. Therefore, the gross profit percentage is 27.5%. True False 1
GROSS PROFIT QUIZ Page 2 9. __________ is the difference between sales and cost of goods.
10. We use items ‘A’, ‘B’ and ‘C’ equally to create product ‘DEF’, which we sell. Item ‘A’ costs $2 each. Item ‘B’ costs $.70 each. Item ‘C’ costs $.90 each. We need to sell product ‘DEF’ at a gross profit of 40%. What is the retail of Each product ‘DEF’?
11. Sales equal $22,000. Cost of goods equal $15,070. What is the gross profit in both dollars and as a percentage?
12. Gross profit equals 37%. Therefore cost of goods equals _________.
13. Sales equal $21,250. Cost of goods equal 58%. What is our gross profit in dollars and as a percentage?
14. Sales equal $21,275. Cost of goods equal $17,000. What is our gross profit in dollars?
15. Sales equal $415,950. Gross profit dollars equal $133,104. What percentage is our cost of goods?
16. Gross profit = $128,065. Cost of goods = 65%. What is the sales volume needed to achieve our gross profit?
17. __________ is the difference between sales and gross profit.
GROSS PROFIT QUIZ Page 3
18. Gross profit is commonly measured as a _______________ of sales.
19. Gross profit equals $42,000. Cost of goods equals 72%. What is our volume of sales for the achieved gross profit?
20. Complete the following equation.
Sales -____ = Gross Profit
21. Sales equal $15,000. Gross profit dollars equal $3,750. Calculate the gross profit percentage.
22. We sell baggets for $6.50 each. We mark them up to achieve a 30% gross profit. What is our cost for each bagget we sell?
23. A case of canned Artichoke Hearts is $55.08 and they are packed twelve pieces to a case. You need your gross profit percentage to equal 32%. what should the retail price be for each can to achieve your gross profit percentage?
24. We sell widgets for $5 each. Each widget produces a 25% gross profit. How much is our gross profit measured in dollars?
25. Complete the following equation. Gross profit / Sales = ____________.