using the the following spreadsheet answer the questions below. 1. creating an open to buy plan can help you carefully manage merchandise across the business for the year by using an open to buy plan you're able to find areas within your retail organization where you can save money to invest in other areas of the business using the open to buy formula calculate the dollar amount of 15% cost savings that allow you to invest in another area of the business if you currently have $155,000 devoted to inventory. ( show calculations)

2. what is planned end-of-month inventory?

3. how could the information in an open to buy plan Be used to identify sales trends forecast sales develop pricing strategies and evaluate vendor and products selections?

4. describe how sales volume data can be used to evaluate retail merchandising and sales operations including procedures systems and practices

1 2 6 Month OTB Plan 3 Beginning of the Month Inventory 4 Sales 5 Markdowns 6 Open-to-buy at retail) 7 Open-to-buy at cost) 8 End of Month Inventory June July August September October November $155,000 $150,000 $152,000 $157,000 $157,000 $165.000 $47.000 $48,000 $50,000 $50,000 $52,000 $48,000 $1.000 $750 $750 $1,000 $1,500 $1,000 $43,000 $50,750 $55,750 $51,000 $61,500 $37,000 $17,200 $20,300 $22,300 $20,400 $24,600 $14,800 if the initial markup is 40% $150,000 $152,000 $157,000 $157,000 $165,000 $153,000 9 10 The Open-To-Buy Formula 11 Planned Sales 12 + Planned Markdowns 13 + Planned End of Month Inventory 14 - Planned Beginning of Month Inventory 15 Open-to-Buy (at retail) 16 1 2 6 Month OTB Plan 3 Beginning of the Month Inventory 4 Sales 5 Markdowns 6 Open-to-buy at retail) 7 Open-to-buy at cost) 8 End of Month Inventory June July August September October November $155,000 $150,000 $152,000 $157,000 $157,000 $165.000 $47.000 $48,000 $50,000 $50,000 $52,000 $48,000 $1.000 $750 $750 $1,000 $1,500 $1,000 $43,000 $50,750 $55,750 $51,000 $61,500 $37,000 $17,200 $20,300 $22,300 $20,400 $24,600 $14,800 if the initial markup is 40% $150,000 $152,000 $157,000 $157,000 $165,000 $153,000 9 10 The Open-To-Buy Formula 11 Planned Sales 12 + Planned Markdowns 13 + Planned End of Month Inventory 14 - Planned Beginning of Month Inventory 15 Open-to-Buy (at retail) 16