Given the six-month merchandise budget below, answer questions #5-8. When comple

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 not drop the cents).

8. What is the “Total $ Planned Purchases at Cost” figure?

Last Year’s Total Sales = $790,000

Planned % Sales Increase = 6%

Planned % Reductions = 18%

Planned EOM for Period = $196,500

Planned IMU%= 55%

                                                               

Six-Month Merchandise Budget

Fall/Winter

August

September

October

November

December

January

Totals

Planned Sales

Planned Sales %    

12%

14%

22%

22%

16%

14%

100%  

Planned BOM Stock

____________

Planned S/S Ratio

2.0

2.3

2.8

2.5

2.5

2.0

____________

Planned EOM Stock

____________

Planned Reductions

Planned Reductions %

16%

17%

18%

17%

15%

17%

100%  

Planned Purchases @ Retail

Planned Purchases @ Cost

983,656

$623,097

$442,645.20

Planned Purchases at Cost= Planned Purchases at Retail x (100% - Initial Markup %)

                                                               

Six-Month Merchandise Budget

Fall/Winter

August

September

October

November

December

January

Totals

Planned Sales

Planned Sales %    

12%

14%

22%

22%

16%

14%

100%  

Planned BOM Stock

____________

Planned S/S Ratio

2.0

2.3

2.8

2.5

2.5

2.0

____________

Planned EOM Stock

____________

Planned Reductions

Planned Reductions %

16%

17%

18%

17%

15%

17%

100%  

Planned Purchases @ Retail

Planned Purchases @ Cost

Explanation / Answer

Soln : Please refer the table here :

Planned purchased @ cost = $296877.72

Fall/Winter August September October November December January Totals Planned Sales 50244 58618 92114 92114 66992 58618 418700 Planned Sales %     12% 14% 22% 22% 16% 14% 100%   Planned BOM Stock 100488 134821.4 257919.2 230285 167480 117236 1008229.6 Planned S/S Ratio 2 2.3 2.8 2.5 2.5 2 ____________ Planned EOM Stock 196500 196500 196500 196500 196500 196500 1179000 Planned Reductions 8039.04 9965.06 16580.52 15659.38 10048.8 9965.06 70257.86 Planned Reductions % 16% 17% 18% 17% 15% 17% 100%   Planned Purchases @ Retail 154295.04 130261.7 47275.32 73988.38 106060.8 147847.1 659728.26 Planned Purchases @ Cost 69432.768 58617.75 21273.89 33294.77 47727.36 66531.18 296877.717

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