Excel-Lent Fitness Centre Ltd (EFC), a registered VAT vendor, also sells unique EFC branded fitness and sports clothing wear.
Their fitness pants and sports vests are especially popular. EFC has therefore decided to run a promotional campaign named “Fitness Fanatics’1 on these items.
You, as their financial manager, need to prepare a spreadsheet that can be imported into EFC‘s accounting system. This spreadsheet will contain the campaign product code for each item that will be used in Fitness Fanatics as well as the new sales price.
EFC currently uses gross profit margins to calculate selling prices. You however want to move over to using mark-up margins and have decided that this will be a good time to test if this will work.
You have the following information which was used to create the spreadsheet.
a. All the amounts are inclusive of 15% Value Added Tax (VAT).
b. The initial product codes and the current sales prices.
c. The campaign product code will consist of the promotional code (cell B3), a hyphen/dash (-), and the initial product code.
The campaign is as follows:
| 1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
| X |
X |
1 |
1 |
1 |
1 |
Y |
Y |
Characters 1-2 FF (promotional code in cell B3)
Characters 3 “-“ (hyphen/dash)
Character 4-10 XXXXXXX (current product code in row 9)
d. The current gross profit margin is 35% (refer to cell B4)
e. The new mark-up margin is 50% (refer to cell B5)
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