Question: Additional Summary Problem for Learning Unit 5 Remember that dollars must be rounded to 2 decimals, and percentages must be rounded to 1 decimal. Scenario:
Additional Summary Problem for Learning Unit 5
Remember that dollars must be rounded to 2 decimals, and percentages must be rounded to 1 decimal.
Scenario: Express has been selling the Portofino Shirt for quite a few years in many variations (prints, solids, patterns, etc.). Without a doubt, they have purchased hundreds of thousands of this shirt to date but let us focus on a 6000 piece buy.
Below are two tables. Fill them in based on the information provided.
The first table is the Purchase Order
- Calculate the extended cost, extended retail and the MU % using the following information: Express purchased 6000 units and negotiated a cost of $9.20* with their supplier. Express ticketed each shirt at $40.00. In the first Table, calculate the Extended Cost, Extended Retail and the markup percent for this order.
| QUANTITY | DESCRIPTION | UNIT COST | EXTENDED COST | UNIT RETAIL | EXTENDED RETAIL | MU% |
| 6000 | Portofino Shirt | $9.20 |
| $40.00 |
|
|
*Prices are fictitious.
The second table contains Hindsight Results
After the shirts arrived, 1800 sold at the original price ($40.00*), 3200 units sold at 25.0 % off that original price and 1000 units sold at 40.0 % off that original price.
- Use the information above to fill in the table on the following page.
- In the second table below, determine the Unit Retail at 25.0 % off and at 40.0 % off. Then calculate the Extended Cost and the Extended Retail at each price. Sum these totals. Finally, calculate the Maintained MU percent on this shirt.
- Calculate the Maintained MU % for this style.
When you are done, this will provide you with your hindsight after selling of this style is complete.
| QUANTITY | DESCRIPTION | UNIT COST | EXTENDED COST | UNIT RETAIL | EXTENDED RETAIL | MU% |
| 1800 | Portofino Shirt | $9.20 |
|
|
|
|
| 3200 | Portofino Shirt | $9.20 |
|
|
|
|
| 1000 | Portofino Shirt | $9.20 |
|
|
|
|
| 6000 |
|
|
|
|
|
|
*Prices are fictitious.
Base on the Net Sales generated for this style, be prepared to discuss the MU % on the PO vs. the MMU% from the hindsight results. Why are these the same/different? Write out short paragraph with your thoughts. Prepare to explain it in class.
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