PGA PGM 3.0 LEVEL 2 GOLF OPS EXAM AND STUDY
GUIDE LATEST 2023-2024 ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS
|ALREADY GRADED A+
What could be the cause of "overall poor service" issues? -
ANSWER--Unrealistic policies and procedures, poor operational
systems, insufficient training
What is an example of operational change made in response to
variances? - ANSWER--Delaying orders, adjustments in pricing,
discounts, outsourcing tee time booking, staff training, cutting
down labor
The HP has been receiving customer complaints about employee
inconsistency in applying facility policies. What is likely to be the
most productive response? - ANSWER--Look at the big picture-
determine is policies are clearly written, adequate equipment is
being used, and staffing and training is sufficient; collect data
through a fact-finding planning sheet so corrective measures are
objective and factual
When should management implement service improvements? -
ANSWER--Service improvements should only be implemented if it
will generate the desired benefit- they will come about as
problems arise
,PGA PGM 3.0 LEVEL 2 GOLF OPS EXAM AND STUDY
GUIDE LATEST 2023-2024 ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS
|ALREADY GRADED A+
What is the formula for Gross Margin? - ANSWER--Final retail
sales price - COGS = Gross Margin in $$
What is the formula to calculate the Final Retail Sales Price? -
ANSWER--COGS + Gross Margin in $$ = final retail sales price
If an item sells at the targeted markup, why could the markup
percentage and the gross margin percentage be different? -
ANSWER--Because the two are expressed as percentages of 2
different numbers- markup percentage is divided by the wholesale
cost, and gross margin by the retail price
If the planned mark-up is 15%, what would be the price of a shirt
that costs the shop $30 if the Mill River Plan is used? - ANSWER-
-30 X .15 = 4.5, then add the markup amount to the price, so
$34.40.
If a shirt costs $30 and the mark-up percentage for the shirt is
50%, what would be the potential gross margin return on
investment? - ANSWER--30 x .5= 15
15 + 30 = 45
What is the definition of markup? - ANSWER--The difference
between the wholesale price paid for a product and the product's
retail price
,PGA PGM 3.0 LEVEL 2 GOLF OPS EXAM AND STUDY
GUIDE LATEST 2023-2024 ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS
|ALREADY GRADED A+
What is the percent of mark-up if the cost of an item is $75 and it
sells for $120? - ANSWER--Use markup in $$ / COGS = markup
percentage;
(120-75) = 45
45/75 = 60%
What is the price of a driver when it costs the shop $160 and the
markup is 80%? - ANSWER--(160 x .8) + 160 = $288
Using the cost-plus markup approach, what was the markup rate
of a shirt that cost the shop $20 and is selling for $37.50? -
ANSWER--($37.50 - 15) / COGS (20) = $87.50
A golf shop has allocated 13% of its $325,000 retail sales forecast
to the woods. Based on an 70% COGS, what was the estimated
cost of the woods? - ANSWER--325,000 x .13 =42,250 retail
sales for woods
42,250 x .70 = 29,575 (estimated cost)
, PGA PGM 3.0 LEVEL 2 GOLF OPS EXAM AND STUDY
GUIDE LATEST 2023-2024 ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS
|ALREADY GRADED A+
Using a keystone pricing strategy, what is the retail price of a shirt
that has a cost of $30? - ANSWER--$60
A retail shop uses a cost plus 75% pricing strategy in its shoe
department. The manager is planning a 25% off retail promotional
sale for a new model of golf shoe. If the shoe costs the shop $80,
what will the promotional price be? - ANSWER--80 x .75 = 140
140 x .25 = $105
In addition to matching prices, what factors are utilized when
determining competitive pricing? - ANSWER--Supply and
demand, exclusivity, follow the leader, and opportunistic pricing
What is the best course of action for USA flag caps that remain in
stock on July 10th? - ANSWER--Temporary markdowns or point
of sale markdowns
A vendor gives a 30% discount on the cost of a shirt style that did
not sell. What retail price will the shop manager assign to the shirt
if the original cost from the vendor was $45 and his pricing
strategy is to keystone and add $5? - ANSWER--$66.50
GUIDE LATEST 2023-2024 ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS
|ALREADY GRADED A+
What could be the cause of "overall poor service" issues? -
ANSWER--Unrealistic policies and procedures, poor operational
systems, insufficient training
What is an example of operational change made in response to
variances? - ANSWER--Delaying orders, adjustments in pricing,
discounts, outsourcing tee time booking, staff training, cutting
down labor
The HP has been receiving customer complaints about employee
inconsistency in applying facility policies. What is likely to be the
most productive response? - ANSWER--Look at the big picture-
determine is policies are clearly written, adequate equipment is
being used, and staffing and training is sufficient; collect data
through a fact-finding planning sheet so corrective measures are
objective and factual
When should management implement service improvements? -
ANSWER--Service improvements should only be implemented if it
will generate the desired benefit- they will come about as
problems arise
,PGA PGM 3.0 LEVEL 2 GOLF OPS EXAM AND STUDY
GUIDE LATEST 2023-2024 ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS
|ALREADY GRADED A+
What is the formula for Gross Margin? - ANSWER--Final retail
sales price - COGS = Gross Margin in $$
What is the formula to calculate the Final Retail Sales Price? -
ANSWER--COGS + Gross Margin in $$ = final retail sales price
If an item sells at the targeted markup, why could the markup
percentage and the gross margin percentage be different? -
ANSWER--Because the two are expressed as percentages of 2
different numbers- markup percentage is divided by the wholesale
cost, and gross margin by the retail price
If the planned mark-up is 15%, what would be the price of a shirt
that costs the shop $30 if the Mill River Plan is used? - ANSWER-
-30 X .15 = 4.5, then add the markup amount to the price, so
$34.40.
If a shirt costs $30 and the mark-up percentage for the shirt is
50%, what would be the potential gross margin return on
investment? - ANSWER--30 x .5= 15
15 + 30 = 45
What is the definition of markup? - ANSWER--The difference
between the wholesale price paid for a product and the product's
retail price
,PGA PGM 3.0 LEVEL 2 GOLF OPS EXAM AND STUDY
GUIDE LATEST 2023-2024 ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS
|ALREADY GRADED A+
What is the percent of mark-up if the cost of an item is $75 and it
sells for $120? - ANSWER--Use markup in $$ / COGS = markup
percentage;
(120-75) = 45
45/75 = 60%
What is the price of a driver when it costs the shop $160 and the
markup is 80%? - ANSWER--(160 x .8) + 160 = $288
Using the cost-plus markup approach, what was the markup rate
of a shirt that cost the shop $20 and is selling for $37.50? -
ANSWER--($37.50 - 15) / COGS (20) = $87.50
A golf shop has allocated 13% of its $325,000 retail sales forecast
to the woods. Based on an 70% COGS, what was the estimated
cost of the woods? - ANSWER--325,000 x .13 =42,250 retail
sales for woods
42,250 x .70 = 29,575 (estimated cost)
, PGA PGM 3.0 LEVEL 2 GOLF OPS EXAM AND STUDY
GUIDE LATEST 2023-2024 ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS
|ALREADY GRADED A+
Using a keystone pricing strategy, what is the retail price of a shirt
that has a cost of $30? - ANSWER--$60
A retail shop uses a cost plus 75% pricing strategy in its shoe
department. The manager is planning a 25% off retail promotional
sale for a new model of golf shoe. If the shoe costs the shop $80,
what will the promotional price be? - ANSWER--80 x .75 = 140
140 x .25 = $105
In addition to matching prices, what factors are utilized when
determining competitive pricing? - ANSWER--Supply and
demand, exclusivity, follow the leader, and opportunistic pricing
What is the best course of action for USA flag caps that remain in
stock on July 10th? - ANSWER--Temporary markdowns or point
of sale markdowns
A vendor gives a 30% discount on the cost of a shirt style that did
not sell. What retail price will the shop manager assign to the shirt
if the original cost from the vendor was $45 and his pricing
strategy is to keystone and add $5? - ANSWER--$66.50
