Determining How Much Your Hostess Owes

THE HOSTES S S C OST IS BAS ED O N: 1. The amount of the 1/2 price items she purchases (if applicable) 2. Any overage above her free amount earned 3. Sales Tax (based on the total of retail jewelry she uses plus the amount of any 1/2 price items she purchases plus shipping. Use Hostesss sales tax rate. You can type her address in @ www.geotax.com to determine rate) 4. $4 hostess shipping EXAMPLE 1:

A hostess has a $750 show, she earns 30% of her show total in free jewelry ($750 x 30% = $225) and the option of purchasing 8 items at 1/2 price. She picks out $240 worth of jewelry so she went over her free amount by $15 ($240-$225 = $15). Her overage is $15 that she will owe you. She purchases only 4 items at 1/2 price. The items total $116 retail, so she will pay half of that. She will owe you $58. Calculating Sales Tax: $4 shipping + $240 (amount of jewelry she chose) + $58 (1/2 price items) = $302 x 7.75% (use your state tax rate) = $23.41 Calculating Her Total Due to You: $4 shipping + $15 overage + $58 (1/2 price items) + $23.41 = $100.41 due to you

EXAMPLE 2:

Same as above except the Hostess doesnt have an overage (she uses the exact amount) and doesnt purchase 1/2 price items. She will only owe you sales tax plus shipping. Calculating Sales Tax = $4 shipping + $225 (jewelry chosen) = $229 x 7.75% (use your state tax rate) = $17.75 sales tax Calculating Her Total Due to You = 17.75 + $4 = $21.75

EXAMPLE 3:
Same as above except Hostess doesnt purchase half price items or use all her credit. She will only owe you sales tax and shipping. Calculating Sales Tax = $4 shipping + $221 (amount of jewelry chosenshe didnt use $4) = $225 x 7.75% (use your state tax rate) = $17.44 Calculating Her Total Due to You = $17.44 + $4.00 = $21.44

EXAMPLE 4: (Determining her best deal in 1/2 price items)

Same as above except Hostess picks out $240 worth of jewelry plus an additional $150 (retail) she would like at 1/2 price. Its too much for an overage so instead, you will back into what she should get at 1/2 price. Shes earned $240 and picks out a total of $390 ($240+$150). So, she wants $150 more than she has earned. Take $150 and divide by 2.3 = $65.22. This is the approximation for what she should spend in 1/2 price jewelry to get everything else free. If it is a 40% hostess benefits month, use 2.4; 50%, use 2.5. Look at her jewelry wish list. You want to pick out $65 in 1/2 price (or $130 retail value) from that list. For example, it could be two items$98 watch and $32 earrings = $130. Those two would be 1/2 price and everything else on the list is then free. Calculating Her Total Due to You = She will owe you $65 (1/2 price items) + $4 shipping + $25.50 (tax at 7.75% on the 1/2 price of $65, the $4 shipping and the $260 in free jewelry) = $94.50.