Question: 6. Prepare a six-month merchandise plan based on the information presented below. Planned sales are expected to be the same as last year. Last Year

6. Prepare a six-month merchandise plan based on the information presented below. Planned sales are expected to be the same as last year.
Last Year Monthly Sales Last Year BOM Stock
February $12,000 $25,000
March $14,000 $30,000
April $18,000 $38,000
May $19,000 $40,000
June $18,000 $39,000
July $19,000 $41,000
a.Calculate last years monthly stock-to-sales ratios and plan monthly BOM inventory levels.
b.Now, plan monthly reductions for the period. Reductions are planned at 8% and will be distributed as follows:
February 10%
March 5%
April 5%
May 15%
June 30%
July 35%
c. Next, plan monthly EOM stock for each month. Ending inventory for the season is planned at $43,000.
d. Now, plan purchases at retail. Then, convert this figure to cost. The initial markup percentage is planned at 46.4 percent.

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