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Question - The store does $30M annually, has a 15% planned MD rate and a 68% planned MU%. One of the store's key vendors, ABC Knitwear, did 2M in annual sales and took $400,000 in MDs.
a. What is the dollar value of the store's MDs?
b. What is ABC Knitwear's MD%?
c. Based on ABC's sales and the store's planned MD%, what should have been the dollar value of ABC Knitwear's MDs?
d. What is the $ value difference between ABC Knitwear's actual MDs and the planned MDs? (see above)
e. Based on the excess MDs, what is the MD allowance that ABC needs to pay to the store?
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