Why do stores use math?

Answer 1

Stores need to use math for a variety of reasons which include, but are not limited to:

Payroll: A store manager has to figure out payroll, which means summing the hours worked in given period and multiplying that by the rate of pay per employee.

Inventory & Supplies: Stores need to maintain lists of product inventory that subtract one unit every time a customer purchases something so that inventory can be replaced as needed. When supplies are purchased the amount of those purchases is the sum of each item's price times the amount of that item ordered.

Retail Markup: Stores have to cover all expenses (and usually wish to generate profit), so the price of a good that they sell must be higher than the price at which they purchase it. The amount of this markup (or price raise) is dependent on very specific math equations for each type of good. Some types of items can have high markup and some are barely marked up. The markup is usually a percentage of the original cost of the product added to the original price.

Accounts Payable: A store is responsible for paying its bills, such as electricity and water bills for the store. A store also has to either pay a mortgage for its property or (more likely) pay a landlord for rent.

Parent Company Relations: In some cases the store belongs to a larger chain and the parent company wants to know some of the financial information discussed above, so filling out forms for the parent company requires math.

Transactions with Customers: Making change for customers requires the seller to subtract from the amount paid the sum of all things bought.