Homework SourseGiven the sixmonth merchandise budget below answer questions
Given the six-month merchandise budget below, answer questions #1-4. When completing the budget, do not round to the nearest whole dollar (in other words, do not drop the cents)
3. What is the “Total $ Planned Purchases at Retail” figure?
Last Year’s Total Sales = $100,000
Planned % Sales Increase = 5%
Planned % Reductions = 14%
Planned EOM for Period = $25,000
Planned IMU% for Period = 53%
Six-Month Merchandise Budget
Spring/Summer
February
March
April
May
June
July
Totals
Planned Sales
Planned Sales %
10%
25%
20%
20%
15%
10%
100%
Planned BOM Stock
____________
Planned S/S Ratio
2.70
2.30
1.96
1.85
1.87
2.20
____________
Planned EOM Stock
____________
Planned Reductions
Planned Reductions %
10%
15%
20%
22%
18%
15%
100%
Planned Purchases @ Retail
Planned Purchases @ Cost
$116,350
$112,000
$54,684.50
$155,500
| Given the six-month merchandise budget below, answer questions #1-4. When completing the budget, do not round to the nearest whole dollar (in other words, do not drop the cents) 3. What is the “Total $ Planned Purchases at Retail” figure? |
Solution
Soln : Here please refer the table , we can calculate the Planned Purchases @ Retail = Planned Sales +Reductions + Planned EOM - Planned BOM stock
Planned BOM stock = Planned Sales * Planned S/S ratio
Planned sales = We are considering Total of 100000*5% increase = 105000 for the 6 months given.
Planned reductions = Planned sales in month * % of reduction given
We can see here that the Planned Purchases @ Retail = $48412
It is nearer to Option C, hence it is the answer.
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