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

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

3. 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

4. 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

5. 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%

7. Company you are purchasing from7%

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

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

10. 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

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

12. 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

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

14. 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

15. Charges Affecting the Sale
Discounts
Allowances
Sales Tax
Shipping Charges

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

17. 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

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

19. 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 =

20. 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

21. 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
$ *.066
$31.66 2
Belts
36.95
$73.90 2
Pair of Boots
125.00
$250.00 3
Halters
37.95
$113.85
$ $31.66
$559.26
$527.60
.066%
$31.66
$559.26

22. 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

23. 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

27. 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

28. 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

29. 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.