# Marketing Essentials

## Unit 7: Distribution

### Math Workout

1
As a rack jobber for a perfume wholesaler you manage perfume inventory for all of Manhattan where there are 52 perfume retailers. On Mondays and Fridays, when downtown traffic is heavy, you can only restock 4 retailers in a day, but on the other three workdays when traffic is light, you can restock 6 retailers in a day. Assuming you work only Monday through Friday, how many retailers can you visit in a week? How often do you visit each retailer?
A)26 in a week; once every 4 weeks
B)52 in a week; once a week
C)26 in a week; once every 2 weeks
D)24 in a week; once every 2.2 weeks
2
The sales director at a manufacturer decides to try out two different methods of distributing and selling a new video game. The game is sold to a retailer for a net profit of \$9.90 on each game. The game is also sold at the factory outlet for a net profit of \$10.99 on each game. If 500 games are sold by the outlet, how many more would have to be sold by the retailer in order for the profit to be about equal?
A)50
B)24
C)55
D)45
3
The marketing director for a high-end clothing company is considering a selective distribution plan to prevent overexposure of the new spring line. She would like to distribute only 3,600 of the new shirts, half as many of the new sweaters, and a third as many of the new skirts. If she sends an equal number if each type of item to 40 retailers, how many of each product will she send to each retailer?
A)90 shirts, 40 sweaters, 25 skirts
B)90 shirts, 45 sweaters, 30 skirts
C)60 shirts, 30 sweaters, 20 skirts
D)90 shirts, 45 sweaters, 15 skirts
4
The trucks that you plan to use for the distribution of a product have the following dimensions: 24’ long, 8.5’ wide, and 9’ high. The product will be packaged in 2’ by 2’ by 2’ boxes. How many truckloads will it take to transport 600 boxes?
A)2
B)5
C)3
D)4
5
You need to send a package to your company headquarters on the other side of the country and it must arrive today. After doing a little online research, you find an express carrier that offers same-day service. The package weights 137 pounds and the mailing rates are as follows: \$177 for the first 25 pounds, \$1.35 per pound for the next 45 pounds from 26 to 70, and \$89 for every 50 pound increment after that. How much is it going to cost?
A)\$357.01
B)\$415.75
C)\$515.36
D)\$504.75
6
The president of a frozen foods business had to rent out space in a climate controlled warehouse because the freezing system in his warehouse broke down, and \$2,400 in frozen goods went bad. The rent for the building was \$6,000 a month for the first three months, then \$5,000 a month after that. The electric costs were about \$3,500 a month to keep the freezers running. How much did the rented space cost for the year?
A)\$107,400
B)\$96,000
C)\$122,400
D)\$105,000
7
You are creating a six-month merchandise plan for swimming suit sales for the beginning of next year. As you look at last year’s numbers, you notice that suit sales went up about 15% each month from January to June. Last year 30 suits were sold in January. If you increase the total for six months by 10% in anticipation of better sales, how many suits should you buy for the first six months of sales?
A)292 suits
B)228 suits
C)207 suits
D)265 suits
8
You are working out an e-commerce deal with a textbook supplier. Using the Internet, you ordered 300 math textbooks at \$45 each, 240 English textbooks at \$36 each, and 135 Spanish textbooks at \$31 each. Shipping charges are going to be 30 cents a pound and each book weighs about 4 pounds. You would like to pay the bill as soon as possible in order to get the discount. If the dating terms are 2/10, net 30, what will the total cost be with the discount?(The discount is calculated after shipping costs are added.)
A)\$25,798.50
B)\$26,592.30
C)\$27,135.00
D)\$27,677.70
9
You manage a warehouse that has a great deal of merchandise turnover. Although your employees do their best to handle the products carefully, things get damaged now and then. If about \$9,568,700 in merchandise passes through your warehouse in a year and the value of the damaged items is about \$4000, what percentage of the value of a year’s merchandise are damaged goods?
A)42%
B)4.2%
C)0.042%
D)0.42%
10
You are interested in calculating stock turnover for your store so that you can see how your store matches up with others in the industry. Using the table below, determine how many times inventory was sold and replaced during the six months.
 Month Average Inventory Net Sales July \$25,000 \$14,000 August \$28,000 \$14,000 September \$32,000 \$18,000 October \$18,000 \$10,000 November \$24,000 \$13,000 December \$35,000 \$20,000
A)1.8 times
B)6.6 times
C)6 times
D)3.3 times