$.$ Case Study Content

Read the "Mel's Department Store under New Management" case study and complete the provided spreadsheet to answer the questions below.

Question $1$

$1$ Point

$\backslash$begin$\{$tabular$\}\{|$l$|$c$|$c$|\}$

$\backslash$hline & Initial Retail Markup $\backslash \%$ & Maintained Markup $\backslash \%\backslash \backslash$

$\backslash$hline Soft goods$/$apparel & $\backslash (60\backslash \%\backslash )$ & $\backslash (34\backslash \%\backslash )\backslash \backslash$

$\backslash$hline Shoes & $\backslash (54\backslash \%\backslash )$ & $\backslash (33\backslash \%\backslash )\backslash \backslash$

$\backslash$hline Toys & $\backslash (45\backslash \%\backslash )$ & $\backslash (25\backslash \%\backslash )\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|\}$

$\backslash$hline & Item Description & Retail $($on tag$)$ & Cost $\backslash \backslash$

$\backslash$hline $200$ units & prewashed jeans & $\backslash (\backslash$$ $30\mathrm{.}50\backslash )$ & $\backslash (\backslash$$ $16\mathrm{.}00\backslash )\backslash \backslash$

$\backslash$hline $100$ units & jeans jeweled & $\backslash (\backslash$$ $43\mathrm{.}75\backslash )$ & $\backslash (\backslash$$ $17\mathrm{.}50\backslash )\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Given the soft$-$goods target, are the tags on the $200$ units of prewashed jeans marked correctly?

$($A$)$ Yes

Last saved $2$:$35$:$57$ PM Question $9$

Thinking about the pricing of the FUNWEAR prewashed jeans, help Elise Wickstrom create an explanation about the possible reasons multiple markdowns could have been taken and why we compare to plan.

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Question $10$

FUNWEAR is a longtime vendor of Mel's. It provides markdown dollars to help defray the lost gross margin dollars. Why would it provide this money to Wickstrom? Question $7$

Did Elise Wickstrom meet her Initial Retail Markup and Maintained Markup goals with the FUNWEAR prewashed jeans?

Yes

No

She only met part of the goal

Question $8$

Explain how it was possible for Elise Wickstrom to meet her goals with the prewashed jeans despite taking two markdowns.

Use the editor to format your answer Question $6$

After six weeks passed, Elise Wickstrom analyzed her sales of the FUNWEAR prewashed jeans. Of her original $200$ units, this is what she found:

$-50$ units sold at the original retail.

$-34$ units sold at a $38$ percent markdown.

$-116$ units sold at a $44$ percent markdown.

What was her average maintained markup percentage?

$30\backslash \%$

$34\backslash \%$

$38.\backslash \%$

$40\backslash \%$

$41\backslash \%$