CASE STUDY $2\mathrm{.}1$ pricing in mercHandising$$In mid$-$October, a key vendor offers a missy top department store buyer a group of long sleeve crew neck knit tops that it had previously purchased. The vendor has $4,800$ units of assorted knit tops available that it can sell to the buyer for a reduced cost price of $$6\mathrm{.}00$; the regular cost price of the tops was $$9\mathrm{.}00.$ The buyer previously priced these tops at $$29\mathrm{.}00.$ In order to secure the reduced cost price, the buyer has to buy the entire $4,800$ unit availability. The vendor has the following color assortment:$$Striped knit tops, $2,400$ units Solids of black and ivory, $1,440$ units Paisley print knit tops, $960$ units The vendor can ship this assortment and it will be in store by the end of October.$$The buyer previously purchased the same tops that started selling in mid$-$September; approximately four weeks of sales have been recorded. Here is a recap of what was received and what was sold in the four$-$week time period:$$Color$/$print Stripes Solids$$Paisley$$Units purchased $10,00015,0007,200$Units sold in $4$ weeks$2,7004,5001,400$Average units sold per week$6751,125350$Units on hand mid$-$October$7,30010,5005,800$As these are long sleeve knit tops, the buyer set an outdate for November $30($approxi$-$mately seven weeks from mid$-$October$).$Before the vendor discussed the availability with the buyer, there was a promotion planned on the tops for an Election Day sale at $$24\mathrm{.}99.$ The buyer has reviewed the selling and feels the purchase would ultimately be advantageous because increased departmental activity will lead to improved sales. The buyer$$s planned markup per$-$centage for November is $64\mathrm{.}0\%.$ To make the correct decisions, the following ques$-$tions must be answered:$1.$ If the buyer takes advantage of this special purchase, what would the mark$-$up for the entire purchase be based on the regular retail price?$2.$ What should the knit tops be promoted at for Election Day? Will $$24\mathrm{.}99$ be a significant incentive for customers to buy multiple units, or should the buyer restrategize the pricing for the event? What promotions would you recommend?$3.$ Based on current selling trends, if the buyer takes in the extra merchandise, will he meet the end$-$of$-$November outdate for the product?$$Decide what course of action the buyer should pursue and mathematically justify your suggestions as you apply the principles of pricing and repricing.