Given the sixmonth merchandise budget below answer questions

Given the six-month merchandise budget below, answer questions #5-8.  When completing the budget, do not round to the nearest whole dollar (in other words, do not drop the cents).

8. What is the “Total $ Planned Purchases at Cost” figure?

Last Year’s Total Sales = $790,000

Planned % Sales Increase = 6%

Planned % Reductions = 18%

Planned EOM for Period = $196,500

Planned IMU%= 55%

                                                               

Six-Month Merchandise Budget

Fall/Winter

August

September

October

November

December

January

Totals

Planned Sales

Planned Sales %    

12%

14%

22%

22%

16%

14%

100%  

Planned BOM Stock

____________

Planned S/S Ratio

2.0

2.3

2.8

2.5

2.5

2.0

____________

Planned EOM Stock

____________

Planned Reductions

Planned Reductions %

16%

17%

18%

17%

15%

17%

100%  

Planned Purchases @ Retail

Planned Purchases @ Cost

983,656

$623,097

$442,645.20

Planned Purchases at Cost= Planned Purchases at Retail x (100% - Initial Markup %)

Six-Month Merchandise Budget
Fall/Winter	August	September	October	November	December	January	Totals
Planned Sales
Planned Sales %	12%	14%	22%	22%	16%	14%	100%
Planned BOM Stock							____________
Planned S/S Ratio	2.0	2.3	2.8	2.5	2.5	2.0	____________
Planned EOM Stock							____________
Planned Reductions
Planned Reductions %	16%	17%	18%	17%	15%	17%	100%
Planned Purchases @ Retail
Planned Purchases @ Cost

Solution

Soln : Please refer the table here :

Planned purchased @ cost = $296877.72

Fall/Winter	August	September	October	November	December	January	Totals
Planned Sales	50244	58618	92114	92114	66992	58618	418700
Planned Sales %	12%	14%	22%	22%	16%	14%	100%
Planned BOM Stock	100488	134821.4	257919.2	230285	167480	117236	1008229.6
Planned S/S Ratio	2	2.3	2.8	2.5	2.5	2	____________
Planned EOM Stock	196500	196500	196500	196500	196500	196500	1179000
Planned Reductions	8039.04	9965.06	16580.52	15659.38	10048.8	9965.06	70257.86
Planned Reductions %	16%	17%	18%	17%	15%	17%	100%
Planned Purchases @ Retail	154295.04	130261.7	47275.32	73988.38	106060.8	147847.1	659728.26
Planned Purchases @ Cost	69432.768	58617.75	21273.89	33294.77	47727.36	66531.18	296877.717