Question: 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
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 Years Total Sales = $790,000
Planned % Sales Increase = 6%
Planned % Reductions = 18%
Planned EOM for Period = $196,500
Planned IMU%= 55%
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Six-Month Merchandise Budget
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| Fall/Winter | August | September | October | November | December | January | Totals |
| Planned Sales
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| Planned Sales % | 12% | 14% | 22% | 22% | 16% | 14% | 100% |
| Planned BOM Stock
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| ____________ |
| Planned S/S Ratio
| 2.0 | 2.3 | 2.8 | 2.5 | 2.5 | 2.0 | ____________ |
| Planned EOM Stock
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| ____________ |
| Planned Reductions
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| Planned Reductions % | 16% | 17% | 18% | 17% | 15% | 17% | 100% |
| Planned Purchases @ Retail
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| Planned Purchases @ Cost
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| A. | 983,656 | |
| B. | $623,097 | |
| C. | $442,645.20 | |
| D. | wrong
Planned Purchases at Cost= Planned Purchases at Retail x (100% - Initial Markup %) |
Planned Purchases at Retail= Sales + Reductions + EOM Planned BOM
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