Welcome to MC5079 Commercial Calculations Exercise. In this assessment, you’ll tackle various commercial calculations to sharpen your financial skills. Below are the questions, instructions, and answers to guide you through this task.

**Instructions: MC5079 Commercial Calculations Exercise Assignment**

- Download the provided question sheet.
- Type your answers in the designated spaces.
- Upload your completed answers to Turnitin by the deadline of 3 pm on Wednesday, November 2nd.
- Go to Weblearn, select module (MC5079), navigate to the Assessment section, choose Online Submission, then select 001 Commercial Calculations, and fill in details for Single File Upload.

- While not mandatory, showing calculations can help you earn partial marks.

**Question 1: Retail Space Productivity (27 marks)**

**1a.** What is the productivity of a retail space with dimensions 50ft x 60ft that sells £150,000 worth of stock? (5 marks)

**Answer:** *Provide your answer here.*

**1b.** If the sales figure of £150,000 breaks down into £70,000 worth of shoes, £50,000 worth of bags, and £30,000 worth of sunglasses, what areas would you allocate to each category to match their relative sales values in the same overall retail space? (7 marks)

**Answer:** *Provide your answer here.*

**1c.** Suggest one possible pair of dimensions (length x breadth in whole feet) for a retail space that achieves a productivity rate of £50 per square foot when selling £75,000 worth of stock. (5 marks)

**Answer:** *Provide your answer here.*

**1d.** What value of stock would a circular space with a radius of 3 feet need to sell to achieve a productivity rate of £50 per square foot? (Use π = 3.1) (5 marks)

**Answer:** *Provide your answer here.*

**Question 2: Jewelry-Making Business (33 marks)**

**2a.** You start a jewelry-making business, incurring expenses of £2,000 pcm for studio rent and paying each of three employees £600 pcm. In the first month, you spend £2,800 on materials to make 300 necklaces. What is the minimum price you need to charge for each necklace to break even, assuming all items sell? (10 marks)

**Answer:** *Provide your answer here.*

**2b.** You sell these necklaces using a Cost Plus Pricing system with a + factor of 1.5. What is the retail price of a single necklace? (5 marks)

**Answer:** *Provide your answer here.*

**2c.** The following month you decide to charge £40 for each necklace. To the nearest whole number, what percentage mark-up on the break-even cost does this represent? (5 marks)

**Answer:** *Provide your answer here.*

**2d.** Of 300 items produced, 240 are purchased; what is the sell-through rate? (3 marks)

**Answer:** *Provide your answer here.*

**2e.** In order to dispose of the remaining necklaces, you reduce the price from £40 to £16. What is the percentage off-retail markdown on each item? (5 marks)

**Answer:** *Provide your answer here.*

**2f.** What is the overall percentage markdown (calculated to one decimal place) on the total stock, assuming that all the remaining items are purchased at the sale price used in Q2e? (10 marks)

**Answer:** *Provide your answer here.*

**2g.** You start producing necklaces in various colors. For every blue-bead necklace sold, three green-bead necklaces and six black-bead necklaces are purchased. How many necklaces of each bead color should you make, assuming a total of 300 items produced? (5 marks)

**Answer:** *Provide your answer here.*

**2h.** You realize that you have not taken VAT (20%) into account when pricing your necklaces. What should you be charging for the £40 items? (5 marks)

**Answer:** *Provide your answer here.*

**Question 3: Chain Store Statistics (20 marks)**

**3a.** A chain store with 40 outlets operates for 45 weeks in the calendar year, selling a total of 180,000 items. What is the average rate of sale per store per week? (5 marks)

**Answer:** *Provide your answer here.*

**3b.** One outlet holds stock worth £68,000, with weekly predicted sales of £1,700. How many weeks of cover does this represent? (5 marks)

**Answer:** *Provide your answer here.*

**3c.** The items in one outlet are available in various colors: 100 Red, 400 Green, 500 Blue, 800 White, and 200 Black. Calculate the percentage of total stock for each color option. (10 marks)

**Answer:** *Provide your answer here.*

**3d.** Based on the relative ratios from Q3c, how many items of each color would constitute a forward order of 80,000 pieces? (10 marks)

**Answer:** *Provide your answer here.*

Feel free to reference these answers as you complete the MC5079 Commercial Calculations Exercise. Good luck!