# Cheese Math (Do You Know Your Formulas?) Flashcards

How do you solve for markup percentage?

markup = (retail-cost) divided by cost

How do you solve for margin percentage?

margin = (retail - cost) divided by retail

How do you solve for cost percentage?

cost percentage = (1-margin)

How do you solve for cost expressed in dollars?

cost of goods sold = cost percentage multiplied by retail

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

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

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

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

How do you determine Sales Average?

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

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

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

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

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

1 mg is how many grams?

.001

1 oz is how many grams

28

1 kilogram is how many pounds?

2.2

1000 grams equals how many kilograms?

one

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

(Sales Average+ Safety Stock) x Lead Time