1. A buyer had an inventory of $45,000 on June 1 and a planned EOM STOCK of $51,000. Planned sales for the department were $39,000 and planned markdowns for THE MONTH were $3200. As of June 1, the buyer had merchandise onorder of $10,000 at retail to be delivered during the month. Planned initial mark up was 48%. Calculate the buyers OTB at COST as of June 1.

2. Why is it important to hold back some OPEN to buy dollars?

New lines or items may appear that the buyer will want to purchase

Reorders may be needed to FILL IN staple stock or replace fast selling items

SPECIAL PROMOTIONS from vendors may become available

All of the above

3. Planned sales + planned markdowns + planned ending stock-stock on hand-orders placed for delivery during the period, determines the:

Gross Margin

Open to buy

Stock turnover

4. Given THE FOLLOWING figures, determine the OTB as of October 10:

Retail STOCK on hand, October 10 - $22,000

merchandise on Order - $6,200

Planned BOM stock - November 1 - $24,000

Planned sales for October - $9,500

Actual sales as of October 10 - $3,500

Planned markdowns for October - $380

Actual markdowns as of October 10 - $200

5. If the buyer does not have sufficient OTB to make a desired purchase, which of the following ACTIONS would increase the buyer's OTB?

Increased planned markdowns

Return merchandise to vendor

CANCEL outstanding orders

All of the above