Objective: Process the sale to complete the exchange. 2.11 Marketing Math Objective: Process the sale to complete the exchange.

Day 1 Slides 3 through 7 Check writing Purchase Orders Parts of a check Purchase Orders Adding sales tax Shipping charges

Person/Place to whom you are writing the check to Current Date YY Person/Place to whom you are writing the check to Numerical amount Dollar amount of the check in words cents over 100 follow through with at line What you are Writing the check for Your Signature

Credit Card vs. Debit Card Cheaper than Credit Card Flat Rate of $0.59 Faster than Check Money is transferred immediately Some offer debit card discount

Extensions and Subtotal John Smith 7150 E. 24th Street Yuma, AZ 85365 04/08/11 6 38760 3 Shirts $29.95 $89.95 2 Belts 36.95 $73.90 2 Pair of Boots 125.00 $250.00 3 Halters 37.95 $113.85 $527.60 7%

Company you are purchasing from 7%

Day 2 Slides 9 through 29 Use to answer notes and worksheets

Making Change Simple Math! Subtraction Bill Total = $18.95 Customer has $20.00 How Much Change?

Extensions Multiplication Multiply the number of units by the price per unit 12 Cans of Soda $0.50 per can 12 x $0.50 = $6.00

Methods of payment for a sale Cash or check Sales Credit Card Debit Card Layaway On Approval Cash On Delivery

Cash or Check 23% of sales are cash 4.3% of sales are check Cash is King: Some stores will not accept checks All stores have check policies License or ID Phone Number Bounced check charges

Credit Card vs. Debit Card Businesses pay a credit card fee 1.79% to 3.25% of the transaction Stores may set charging limits

Other Methods of Payment Cash-on-Delivery : (COD) Ex: Pizza Delivery Lay-Away: Merchandise removed from stock Customer leaves a deposit and makes payments Merchandise received when paid off On Approval: Customer takes merchandise on store credit

Charges Affecting the Sale Discounts Allowances Sales Tax Shipping Charges

Discounts Reduction in sales prices Calculated before sales tax Special Sales Coupons Customer Loyalty Discounts Group Discounts Bulk Sales Discounts

Calculating the Discount $30 item with a 22% discount Multiply price by the discount percentage $30 x 22% = $6.60 (Total Discount) Subtract the total discount from the price $30 - $6.60 = $23.40

Allowances Usually occurs when merchandise is defective A partial return of the sales price Usually occurs when merchandise is defective Calculated Like a Discount

Sales Tax Sales Tax: A percentage fee placed by the government on the sale of goods and services. Sales Taxes are different per state and county Alaska, New Hampshire, Delaware, & Oregon = 0% Arizona is highest: 11.75% North Carolina = Mecklenburg County =

Calculating Sales Tax $25 x 7.25% = $1.81 $25 + $1.81 = $26.81 Multiply subtotal by the sales tax rate $25 x 7.25% = $1.81 Add sales tax to the subtotal for sale total $25 + $1.81 = $26.81

Bill total with tax included John Smith 7150 E. 24th Street Yuma, AZ 85365 04/08/11 6 38760 3 Shirts $29.95 $89.95 $527.60 *.066 $31.66 2 Belts 36.95 $73.90 2 Pair of Boots 125.00 $250.00 3 Halters 37.95 $113.85 $527.60 +$31.66 $559.26 $527.60 .066% $31.66 $559.26

Shipping Charges Charges for delivery of a product Shipping charges are not subject to tax. Shipping Charges are often paid by the consumer. Shipping charges are calculated based on: Weight Item Price Geographic Zones Length of time to deliver Combination of 2 or more

Shipping Shipping charges are not subject to tax. Shipping Charges are often paid by the consumer. Shipping charges are calculated based on: Weight Item Price Geographic Zones Combination of 2 or more

How do charges and discounts affect the price of purchases? Increase the cost of items Cover credit card charges and frequent discounts Retailers pass the charges or discount down to the customer As an additional charge Raise the original price of the item

After the Transaction Returns Exchanges Merchandise brought back for a cash refund or credit Full payment returned Exchanges Merchandise returned for something else Even exchange: occurs when an item is exchanged for the exact same thing Uneven Exchange: money may be owed or returned Some stores only offer in-store credit & not cash back

Technology in calculations Speeds up process No “in your head” or hand calculations POS (point of sale) Computer make all of the calculations Less time taken to double check figures.