Module Problem Assignment 20: Six-Month Plan(34 points maximum)Student Name:.

Based on the information on Pages 2-4, complete the 6-month plan in the chart below (and show your work for the selected cells listed on Pages 2-4).

You may either type your answer directly in this Word document and submit it as a Word file, or print this document and hand-write your work and then scan the assignment into a single PDF file.Show 2 decimal places for all $ and % figures.

Fall (Aug - Jan)

Aug

Sep

Oct

Nov

Dec

Jan

TOTAL

Sales

LY Actual ($)

$6,750.00

$20,250.00

$40,500.00

$40,500.00

$20,250.00

$6,750.00

$135,000.00

LY Actual (%)

5.00%

15.00%

2)

30.00%

15.00%

5.00%

100.00%

TY Plan ($)

3)

4)

5)

$44,550.00

4)

3)

1)

TY Plan (%)

5.00%

15.00%

2)

30.00%

15.00%

5.00%

100.00%

Reductions

LY Actual ($)

$0.00

$1,350.00

$2,025.00

$2,025.00

$3,375.00

$4,725.00

$13,500.00

LY Actual (% of seasonal reductions)

0.00%

10.00%

15.00%

15.00%

25.00%

35.00%

100.00%

TY Plan ($)

$0.00

7)

$1,782.00

$1,782.00

8)

9)

6)

TY Plan (% of seasonal reductions)

0.00%

10.00%

15.00%

15.00%

25.00%

35.00%

100.00%

TY Plan - (% of Sales)

0.00%

5.33%

11)

11)

12)

56.00%

10)

SSR

LY & TY

3.00

2.50

1.80

1.60

2.00

2.70

BOM

TY Plan ($)

13)

$55,687.50

$80,190.00

$71,280.00

14)

$20,047.50

EOM

TY Plan ($)

15)

16)

17)

18)

19)

20)

Purchases @Retail

TY Plan ($)

21)

$47,965.50

$37,422.00

23)

25)

$0.00

27)

Purchases @Cost

TY Plan ($)

22)

$21,584.48

$16,839.90

24)

26)

$0.00

28)

MMU

TY Plan (%)

55.00%

52.60%

29)

29)

31)

29.80%

33)

TY Plan ($)

$4,083.75

$11,716.65

30)

30)

32)

$2,212.65

34)

Module Problem Assignment 20: Six-Month Plan

Name: ______ _____________

In this assignment, you will be setting up a 6-month merchandise budget plan based on the following information. Please complete all blank cells (numbered cells) in the 6-month plan chart on Page 1, and show your work for the selected cells (formulas used) listed below.

Work on these problems while listening to Module 20 lecture video. The video contains number answer key to the cells listed below (i.e., the cells for which you are required to show work/rationale).

I. Planning Sales (5 points)

• A sweater buyer is about to set up a 6-month plan for this fall season (Aug - Jan).The total fall sweater sales in LY were $135,000, and the monthly sales distribution was as given in the table on Page 1.
• TY, the buyer predicts a10% increase in total sweater salesas compared to LY's season total sales, and that the monthlysales % distribution would beexactly the sameas LY's.
• Complete the "Sales" rows of the 6-month plan (Cells #1 through 5 in the 6-month plan chart on page 1).

Show your work/rationale for the answers in the following numbered cells

1)

2)

3)

II. Planning Reductions (7 points)

• The sweater buyer is now planning retail reductions for this fall season.Considering market environments, she projects that the total reductions of this fall (including all markdowns, employ discounts, and shortages) will be8% of Sales.
• TY's monthly reductions distribution (% of seasonal total reductions) is planned to remain the same as LY.
• Complete the "Reductions" rows of the 6-month plan (Cells #6 through 12 in the 6-month plan chart on page 1).

Show your work/rationale for the answers in the following numbered cells

6)

7)

10)

11)

III. Planning BOM & EOM Stock Levels (8 points)

• The sweater buyer is now planning inventory levels for each month using the SSR Method.
• Monthly SSR's of TY are planned to be the same as those of LY, as presented in the table.
• For this exercise, to calculate the January (the last month) EOM, assume that the buyer plans to make NO PURCHASE during the last month.
• Complete the "BOM" and "EOM" rows of the 6-month plan(Cells #13 through 20 in the 6-month plan chart on page 1).

Show your work/rationale for the answers in the following numbered cells

13)

15)

20)

IV. Planning Purchases (8 points)

• Now, the sweater buyer needs to set up a monthly purchase plan based on the projected sales, BOM, reductions, and EOM for each month in this fall season.
• Initial markupgoal for this fall season is determined at55%.
• Complete the "Purchases (@Retail and Cost)" rows of the 6-month plan (Cells #21 through 28 in the 6-month plan chart on page 1).

Show your work/rationale for the answers in the following numbered cells

21)

22)

27)

28)

V. Maintained Markup - Projection (6 points)

• Based on the 6-month plan created, the sweater buyer is now trying to project monthly and seasonal maintained markup % and $ for merchandise planned for this fall season.
• Complete the "MMU" rows of the 6-month plan (Cells #29 through 34 in the 6-month plan chart on page 1).

Show your work/rationale for the answers in the following numbered cells

29)

30)

33)

34)