3. The sales performance of the Luggage Department in a Sporting Goods Store last Fall was: August $80,000 September $90,000 October $100,000 November $140,000 December $160,000, and January $120,000 As the six-month merchandising plan for this department was being formulated for this fall season, the following decisions were made:

a) An 8% sales increase could be attained this year due to the introduction and addition of a new classification of carry-on travel luggage that is well priced and of exceptional value.

b) The planned GM% would be

c) The planned BOM stock-to-sales ratio for each month this year would be the same as last year, i.e. August 3.3 September 3.1 October 2.9 November 2.5 December 2.2 January 2.6 with an ending retail inventory for the period of $288,000 (this is the EOM for the last month).

d) The planned total reductions for last year were 11.6% and were distributed with (You make decisions on if reductions need to be increased or stay the same as last years numbers) 7% for August 9% in September 18% in October 12% in November 26% in December and 28% in January.

Compute:

a. The planned monthly retail receipts (purchases) for each month.

b. The planned average stock and the planned stock turnover.