Sports Marketing: Pricing Worksheet

A. Dick’s Sporting Goods purchases shoes from New Balance for $30.00 each. Dick’s Sporting Goods will sell the New Balance shoe for $85 each.

  1. What is the dollar mark-up? (show your work)
  1. What is the percentage mark-up? (show your work)

B. Dick’s Sporting Goods purchases golf balls from Top Flight for $2.50 for a set of 12. Dick’s Sporting Goods will sell the 12 pack of golf balls for $8.50 each.

  1. What is the dollar mark-up? (show your work)
  1. What is the percentage mark-up? (show your work)

C. What is the dollar markup and markup percentage for a pair of baseball cleats that cost the business $24.00? The retail price of the cleats is $60.

  1. What is the dollar mark-up? (show your work)
  1. What is the percentage mark-up? (show your work)

D. Calculate the quarterly profit if 10,000 soccer balls sold for $9.00 each. The balls cost the store $5.00 each. The expense of running the store was $25,000 during the quarter. (show your work)

E. Wilson Baseball Bat (Model xp2) is marked up 70%. Wilson Baseball Bat (Model xp3) is marked up only 35%. Wilson Baseball Bat (Model xp4) is marked up 45%. Wilson uses product-line pricing. What is the average markup of Wilson Baseball Bats? (show your work)

F. Nike is manufacturing a new shoe for 2006. Expenses of manufacturing the shoe is $15.99 per shoe. Nike uses cost-plus pricing. If Nike wants to make a $55.00 profit, what is the price of the new Nike shoe? (show your work)

G. DECA created and sold t-shirts for the Students Faculty Basketball Game. We paid $3.75 per shirt to Sports Connection and purchased 55 t-shirts. Unfortunately, we only sold 25 t-shirts at $8.00 per shirt. (show your work)

  1. Calculate COGS
  1. Calculate Sales Revenue
  1. What is your net profit/loss?
  1. What is your gross profit/loss?
  1. Prepare the income statement for t-shirts

H. Dick and Jane decided to open a lemonade stand on Saturday. The cost of each cup of lemonade was .25 and they made 50 cups of lemonade. Dick and Jane sold 35 cups of lemonade at 1.00 each. In addition to the cost of goods, Dick and Jane had the following expenses: Table cloth - $4.00, Materials expense (cups, napkins) - $5.00

  1. Calculate COGS
  1. Calculate Sales Revenue
  1. Calculate total Expenses
  1. What is your net profit/loss?
  1. What is your gross profit/loss?
  1. Prepare the income statement for Dick & Jane’s Lemonade Stand: