Additional Summary Problem for Learning Unit 5

Remember that dollars must be rounded to 2 decimals, and percentages must be rounded to 1 decimal.

Scenario: Express has been selling the Portofino Shirt for quite a few years in many variations (prints, solids, patterns, etc.). Without a doubt, they have purchased hundreds of thousands of this shirt to date but let us focus on a 6000 piece buy.

Below are two tables. Fill them in based on the information provided.

The first table is the Purchase Order

1. Calculate the extended cost, extended retail and the MU % using the following information: Express purchased 6000 units and negotiated a cost of $9.20* with their supplier. Express ticketed each shirt at $40.00. In the first Table, calculate the Extended Cost, Extended Retail and the markup percent for this order.

QUANTITY	DESCRIPTION	UNIT COST	EXTENDED COST	UNIT RETAIL	EXTENDED RETAIL	MU%
6000	Portofino Shirt	$9.20		$40.00

*Prices are fictitious.

The second table contains Hindsight Results

After the shirts arrived, 1800 sold at the original price ($40.00*), 3200 units sold at 25.0 % off that original price and 1000 units sold at 40.0 % off that original price.

2. Use the information above to fill in the table on the following page.

3. In the second table below, determine the Unit Retail at 25.0 % off and at 40.0 % off. Then calculate the Extended Cost and the Extended Retail at each price. Sum these totals. Finally, calculate the Maintained MU percent on this shirt.

4. Calculate the Maintained MU % for this style.

When you are done, this will provide you with your hindsight after selling of this style is complete.

QUANTITY	DESCRIPTION	UNIT COST	EXTENDED COST	UNIT RETAIL	EXTENDED RETAIL	MU%
1800	Portofino Shirt	$9.20
3200	Portofino Shirt	$9.20
1000	Portofino Shirt	$9.20
6000

*Prices are fictitious.

Base on the Net Sales generated for this style, be prepared to discuss the MU % on the PO vs. the MMU% from the hindsight results. Why are these the same/different? Write out short paragraph with your thoughts. Prepare to explain it in class.