Reference no: EM133035134

Questions -

Q1. Umberto's merchandising plan for October has a planned beginning inventory of $294,000.00 and a closing inventory of $402,000.00. During this period, sales are estimated to be around $371,400.00, markdowns $23,100.00, and shortages $5,900.00. They have received $258,600.00 in merchandise and $74,700.00 worth of stock is still on order. What are their open-to-buys at retail and at cost if the initial markup% is 55%?

Q2. Price Fixing Convictions have forced a major New York garment manufacturer to liquidate their entire inventory at ridiculously low prices. Soleon's buyer needs to know her open-to-buy in order to decide how much she can invest to take advantage of this opportunity. In order to figure out her OTB, the buyer needs to conduct the following calculations.

1) From their six month merchandising plan, she finds planned sales for Feb. are $407,600.00. The BOM stock was $397,000.00. The EOM stock and reductions are planned at $349,000.00 and $42,800.00, respectively. What are the planned purchases (R) for Feb.?

2) As of Feb.18th, actual sales and reductions for Feb. are recorded at $213,600.00 and $16,700.00, respectively. The records show a retail book inventory of $216,700.00 for that date. Based upon the information given in 1) and 2), calculate the retail value of all merchandise received (i.e., actual purchases already made and received) in Feb. to date?

3) Calculate the buyer's open-to-buy at retail for the remaining dates of Feb. provided that she has $123,700.00 worth of merchandise on order?