6. Prepare a six-month merchandise plan based on the information presented below. Planned sales are expected to be the same as last year.

Last Year Monthly Sales Last Year BOM Stock

February $12,000 $25,000

March $14,000 $30,000

April $18,000 $38,000

May $19,000 $40,000

June $18,000 $39,000

July $19,000 $41,000

a.Calculate last years monthly stock-to-sales ratios and plan monthly BOM inventory levels.

b.Now, plan monthly reductions for the period. Reductions are planned at 8% and will be distributed as follows:

February 10%

March 5%

April 5%

May 15%

June 30%

July 35%

c. Next, plan monthly EOM stock for each month. Ending inventory for the season is planned at $43,000.

d. Now, plan purchases at retail. Then, convert this figure to cost. The initial markup percentage is planned at 46.4 percent.