1. Calculate the shortage or overage percent for the activewear department.

2. Calculate the gross margin percent for this department.

3. Calculate the profit or loss percent for this department.

4. Calculate the GMROI for the active wear department.

5. Compare your findings with the key operating results for the mens sportswear division. Discuss which results are a strength. Which results are weaknesses? How would you address these weaknesses for the coming season?

Cost $ Retail $ Opening inventory Gross purchases Freight 256,500 200,000 1,008 570,920 380,000 Additional markup 800 RTV 6,500 12,270 3,200 Cash discounts Gross sales 665,000 Transfers in Transfers out Customer returns 1,800 1,200 3,800 2,400 15,000 Markdowns 46,500 Markdown cancellations 6,500 Employee discounts 10,000 Operating expenses 292,500 Physical inventory 227,500 The key operating results for the entire men's sportswear division are listed below: Result Factor Gross margin Profit Shortage Operating expense GMROI 46.5% 2.0% 1.85% 44.5% 2.53 Cost $ Retail $ Opening inventory Gross purchases Freight 256,500 200,000 1,008 570,920 380,000 Additional markup 800 RTV 6,500 12,270 3,200 Cash discounts Gross sales 665,000 Transfers in Transfers out Customer returns 1,800 1,200 3,800 2,400 15,000 Markdowns 46,500 Markdown cancellations 6,500 Employee discounts 10,000 Operating expenses 292,500 Physical inventory 227,500 The key operating results for the entire men's sportswear division are listed below: Result Factor Gross margin Profit Shortage Operating expense GMROI 46.5% 2.0% 1.85% 44.5% 2.53