Question

Sour, Inc. has two channels, retail and online, which generate following results. One customer shops at the retail store, paying $40 for 1 unit of a product that costs $25. Another customer shops online, buying 3 units of a product that costs $16 and paying $20 each. Compute the following.

Retail margin (%):

% of Unit Sales Retail:

Dollar Sales Retail:

% of Dollar Sales Retail:

Average Unit Margin ($):

Average Margin (%):

Average Price ($):

Online margin (%):

% of Unit Sales Online.

Dollar Sales Online:

% of Dollar Sales Online:

Answer 1

SOUR INC.

Analysis Table

Retail Channel
Sales Total	$40
Cost Total	$25
Margin Total (Total Sales - Total Cost)	40 -25 = $15
Total Sales in Unit	1 Unit
Online Channel
Total Sales		$20
Total Cost		$16
Total Margin (Total Sales - Total Cost)		$$20-$16 =$4
Total Sales in Units		3 Units
Sales Per Unit (Total Sales / Total Units)		20/3 = $6.6
Cost Per Unit (Total Cost / Total Units)		16/3 = $5.33
Margin per Unit (Total Margin / Total Units)		4/3 =$1.34

Retail Margin %

= Margin Retail / Sales Retail X 100

= 15 / 40 X 100

= 37.5%

% of unit sales Retail

= Margin per unit retail / sales per unit retail X 100

= 15 / 40 X 100

= 37.5%

$ Sales

= Total sales in $ terms

= $40

% of $ Sales

= Margin $ / Sales $ X 100

=15 /40 X 100

= 37.5%

Average Unit Margin $

= (Total Margin Retail + Total Margin Online ) / (Unit retail + Units online)

= (15+4) / (1+3)

= 19/4

=$4.75 per unit

Average Margin %

= (Margin Retail + Margin Online) / (Sales Retail + Sales Online) X 100

= (15+4) / (40+20) X 100

=19 / 60 X 100

= 31.66%

Average Price $

= (Sales Retail + Sales Online ) / (Units retail + Units Online)

= (40 + 20) / (1+3)

=60/4

= $15 per unit

Online Margin%

= Margin Online / Sales Online X 100

= 4 / 20 X 100

= 20%

% of units sales online

= Margin per unit / Sales per Unit X 100

= 1.34 / 6.67 X 100

= 20%

$ Sales Online

= Total sales in terms of $

= $20

% of $ sales online

= Margin in $ / Sales in $ X 100

= 4 / 20 X 100

= 20%