After graduating from college, Melissa Malone landed a position with Orchard Creek, one of the finest childrens boutiques in the Boston area. Three years ago, Melissa was promoted to Assistant Buyer. Among her other responsibilities, Melissa is now the sole buyer for the Childrens Accessories Department.

Orchard Creek has successfully been selling childrens clothing over 25years. Its merchandising assortment includes classic childrens clothing, fashionable accessories, and unique gift items for infants, toddlers, boys, and girls. Employee takes great pride in this store. The boutique, well known for its merchandise quality and exceptional customer service, has received many awards, including the Readers Choice Award and Top Pick for Best Childrens Clothing from local newspapers as well as regional magazine.

This fall, however, the Childrens Accessory Department is failing short of meeting its sales goal. During an October meeting with the department sales manager, the merchandise manager, and the advertising manager, Melissa was directed to examine her departments performance. Within two days, Melissa must analyze the performance of the Childrens Accessories Department, compare it with the departments six moth plan, calculate the departments open-to-buy for the remainder of October, and identify feasible options for getting the department back on track.

Melissa reviewed her six-month plan for Orchard Creeks Childrens Accessory Department, including the actual performance for August and September. She also observed the departments current performance from October 1 through October 15. In her midmonth analysis, Melissa observed the following:

• Planned sales for October were $7,891
• Actual sales from October 1 through October 15 were $3,529
• The value merchandise on-order scheduled to arrive before the end of October is $2,749
• Planned markdown for October was 1,560
• Actual markdown taken from October 1 through October 15 was $715
• Stock on hand as of October 15 is valued at $22,160
• Planed EOM for October were $18,272
• Markup % is 61.5 %

What is the open-to-buy remaining for the month of October? Please calculate

1) OTB at Retail

2) OTB at Cost