Quantitative Methods in Business Essay Example

QUANTITATIVE METHODS IN BUSINESS 5

Question1

  1. 100% C is equal to $1582 therefore calculate a, b and c while as M is the difference of C and S hence to compute M we find the difference between the two.

100% C $1582

124% S (c)

To compute (a) is 124% less 100% is 24% hence a is 24%

To compute (b) we get 24% of $1582 which is $379.68

Thus to compute (c) we add $379.68 to $1582 which is 1961.68

(b) M $5.03

(c) S $31.50

If (a) is 100% (d) and (d) is $5.03 less the total of S therefore to find (d) we less $5.03 from the total of S which is $31.50 hence (d) is $26.47

But (a) is the total percentage i.e. 100% therefore (a) is 100%

To compute (b) we get the percentage of $5.03 therefore (b) is 19%

And the (c) is the total of C and M hence (c) is 119%

100% C (b)

(a) S $17118.92

To calculate (a) it is the sum of C and M hence (a) is 100% add 21% which is 121%

To compute (b) we get 100% of S which is 121% therefore to get (b) it is 100% of $17118.92 which is $14,147.87

Lastly to compute (c) it is the difference between S and C hence $17118.92 less $14,146.87 which is 2,971.05

  1. Selling price $36.95

Markup is 28% on cost

Cost is selling price less markup hence to calculate markup it is 28% of $36.95 which is $10.346 therefore the cost is $36.95 less $10.346 which is $26.604

  1. Buying price $26.40 per dozen to get the buying price of each paint brush we divide by 12 units which is $2.2 per paint brush.

The cost of each paint brush is the buying price add markup which is 37% of the cost of each paint brush hence the markup is 37% of the cost of each paint brush i.e. $2.2 hence the markup price is $0.814 per paint brush.

The selling price of each brush is $0.814 add $2.2 which is $3.014 thus been the selling price.

  1. Selling price $349.85 and markup $60.72

The cost of the guitar is the selling price less markup hence $349.85 less $60.72 which is $289.13 which is the cost of the guitar.

To compute percentage markup the selling price of the guitar is computed to 100% we then get the price in percentage of the markup. Therefore, 100% is $349.85 what about the percentage of $60.72 to get the percentage markup which is 17.4% i.e. markup percentage.

  1. Selling price $21.95 cost $15

To find markup we less the cost from the selling price i.e. $21.95 less $15 which is $6.95 the markup price. To compute percentage markup we equate the selling price to 100% then what about the percentage markup i.e. if 100% is $21.95 what percentage is $6.95 which is 31.7% which is the markup.

  1. Buying price $38 per a box of 50 books

The cost price per book is $38 divide by the total number of books which is 50 i.e. the cost price of each book is $0.76.

The markup is 20% of each book hence to compute the markup we will add 20% to the cost of each book the markup is $0.152 since the retailer maintains a markup of 20% which is $0.152

The selling price is the markup add buying price hence to compute selling price we add the markup to the cost of each but thus the selling price per books was $0.912.

  1. Selling price $129.80 cost is $94.30

To compute the markup we less the cost price from the selling price hence markup is $35.5

To compute percentage markup we equate the selling price to 100% then find the percentage of the markup i.e. if 100% is $129.80 what about $35.5 which is 27.3%

  1. Selling price of a porch swing for $349 and the markup is $82.59 on cost

The cost of the porch swing can be computed when we less the markup from the selling price i.e. $349 less $82.59 which is $266.41

To calculate percentage markup we compute the selling price to 100% then calculate the percentage of the markup hence if 100% is $349 what about the percentage of $82.59 which is 23.7% i.e. the markup percentage.

Question 2

  1. Cost price of a digital film scanner $609 is marked down to $499

To compute mark down we less the final price from the original price i.e. $609 less $499 which is $110 hence the markdown is $110

To get the percentage we equate the original price to 100% then calculate the mark down percentage. Therefore is 100% is $609 what about $110 hence the percentage mark down is 18.06%

  1. Selling price of old Tyme pottery $32 but marked down by 45%

To calculate mark down we compute the selling price to 100% then calculate the value of the mark down i.e. if 100% is equal to $32 what about 45% hence the marked down about is $14.40

To get the final amount we less the mark down amount from the original i.e. $32 less $14.40 to get the reduced price to $17.60

  1. The final price of a camp stove after mark down of $14.7 to settle at $ 35.25

The original price can be computed when we add the marked down price to the final price i.e. $14.7 add $35.25 which is $49.95 which is the original price of the camp stove.

To calculate percentage mark down we equate the original price to 100% then find the percentage of the marked down price as follows if 100% is equal to $49.95 what will be equal to $14.7 therefore the percentage mark down is 29.43%

  1. Mark down percentage of Swiss Air is 25% original price was $496

To compute the mark down amount we equate the original price to 100% so if 100% is equal to $496 what amount is equal to 25% to get the mark down amount of $124 thus the marked down amount was $124

To get the selling price we will less the marked down amount from the original amount i.e. $496 less $124 to get the selling price to be $372

  1. Box kite original price is $49 and is marked down by $19.25

To calculate the percentage mark down we equate the original price to 100% and find the percentage of the mark down i.e. if 100% is equal to $49 what percentage is equal to $19.25 therefore, 39.29% is the mark down percentage.

To get the reduced price we less the mark down from the original price therefore, $49 less $19.25 which is $29.75 i.e. the amount of reduced price.

Question 3

  1. Turnover cost can be calculated when we add all the costs used by spring field on their employees

2010 $39,376 ÷ $23,156= $0.0572

2011 $40,201÷ $24123 = $1.665

2012 $40256 ÷ $25325 = $1.5896

2013 $42300 ÷ $25253 = $1.6750

Turnover at retail

2010 $231,832 ÷ $142,765 = $1.8581

2011 $231,900 ÷ $152,321 = $1.52244

2012 $240,020 ÷ $153,062 = $1.5681

2013 $242,500 ÷ $154,00 = $1.5747

  1. Average inventory

$39,376 + 40201 + 40256 + 42300 + 23156 + 24123 + 25325 + 25253 = 259,990 ÷ 2 = $129,995

Cost of goods sold

$142765 + 152321 + 153062 + 154,000 = $602,148 ÷ 2 = $301,074

Question 4

  1. Weighted average method

60 × 15 = 900

140 × 15.50 = 2170

190 × 19 = 3610

70 × 16 = 1120

30 × 19.50 = 58500

Total products $66300

$66,300 ÷ 150 = 442

  1. FIFO method

$66300 ÷ 490 units 135.306

  1. LIFO method

$66,300 ÷ 640units = 103.5937

REFERENCES

Birney, E., Andrews, D., Cáccamo, M., Chen, Y., Clarke, L., Coates, G., … & Down, T. (2006). Ensembl 2006. Nucleic acids research, 34(suppl 1), D556-D561.

Betton, S., Eckbo, B. E., & Thorburn, K. S. (2008). Markup pricing revisited. Tuck school of business working paper, (2008-45).

Chou, H. I., Tian, G. Y., & Yin, X. (2010, August). Rumors of mergers and acquisitions: Market efficiency and markup pricing. In 23rd Australasian Finance and Banking Conference.

Demeter, K., & Matyusz, Z. (2011). The impact of lean practices on inventory turnover. International journal of production economics, 133(1), 154-163.

Gaur, V., Fisher, M. L., & Raman, A. (2005). An econometric analysis of inventory turnover performance in retail services. Management science, 51(2), 181-194.

Hubbard, T., Andrews, D., Cáccamo, M., Cameron, G., Chen, Y., Clamp, M., … & Curwen, V. (2005). Ensembl 2005. Nucleic acids research, 33(suppl 1), D447-D453.