Cheese Math (Do You Know Your Formulas?)

Question 1

How do you solve for markup percentage?

Answer 1

markup = (retail-cost) divided by cost

Question 2

How do you solve for margin percentage?

Answer 2

margin = (retail - cost) divided by retail

Question 3

How do you solve for cost percentage?

Answer 3

cost percentage = (1-margin)

Question 4

How do you solve for cost expressed in dollars?

Answer 4

cost of goods sold = cost percentage multiplied by retail

Question 5

How do you solve for sales price if you only have markup percentage and cost?

Answer 5

retail = cost of goods sold multiplied by (1+markup)

Question 6

How do you solve for sales price if you only have cost of goods sold and margin percentage goal?

Answer 6

retail = cost of goods sold divided by (1-margin)

Question 7

How do you determine Sales Average?

Answer 7

Divide the sum of the total sales by the period of time (usually days)

Question 8

Given a known inventory amount, how do you solve for your out of stock point?

Answer 8

Divide your on hand count by the sales average (plus any Safety Stock).

Question 9

When determining a reorder point, what information do you need?

Answer 9

Stock on hand count, sales average, safety stock amount (if any), lead time, and number of days until you can place the next order.

Question 10

1 mg is how many grams?

Answer 10

.001

Question 11

1 oz is how many grams

Answer 11

28

Question 12

1 kilogram is how many pounds?

Answer 12

2.2

Question 13

1000 grams equals how many kilograms?

Answer 13

one

Question 14

What is the formula for PAR, in determining the reorder point?

Answer 14

(Sales Average+ Safety Stock) x Lead Time