AMD 376 Merchandise Planning and Control

Instructions :Please write down all calculation procedures used to come up with the final answer on a separate sheet of paper. Please circle or highlight your final answer. Missing calculations and not rounding to TWO decimal places (where applicable) will result in zero points. Each question is worth 5 points.

1.A buyer was shopping for womens blouses and selected a group priced at $175.00 per dozen. Merchandising considerations dictated a markup of 58.5%.Calculate the retail needed (per piece) to capture the markup goal.

2. A buyer plans to purchase a sofa to retail for $989.99. The planned markup is42%. How much should the buyer plan to spend (i.e. cost price) for the sofa?

3. Macys bridge department previously marked down 12 Ellen Tracy velvet jackets from $355 to $155. They are now being marked down an additional 30% off of the already reduced price of $155.a.What is the new retail price?b.What is the total markdown percentage? [Hint: use the original retail priceof $355 and the new retail price (the price you found in part a) to calculate the markdown %].c.If all 12 units were sold at the reduced price (the price you found in part a),what is the net markdown in dollars? [Hint: Net Markdown = total/gross markdown markdown cancellation; hence, if you have $0 for markdown cancellation, then you are essentially just finding total/gross markdown, as in this case total/gross markdown = net markdown).

4.Vera Wang white skirts were marked down from $189 to $49.a.What percentage markdown was taken?b.Discuss briefly why such a drastic markdown might need to be taken.c.If 35 units were available at the original price and 20 units sold at that price (i.e. original price of $189) and 10 were sold at the markdown price of $49, what is the markdown cancellation if the remaining skirts were marked back up to the original price of $189?

5.JCPenneys took the following succession of markdowns on a mens cotton sweater: original price of $49 was marked down to $27.97, then $19.97, then$9.97, and finally, marked down to $4.97. What is the final markdown percentage taken on this sweater?

6.The prices of the following items were reduced for a three-day sale(see table below). At the end of the sale, prices for the remaining items were returned to the original retail price. Use the chart below to help you calculate the total markdown cancellation dollars.

Original Retail	Sale Price	$ Difference	On Hand	Sold	# of items marked back up	Markdown Cancellation $
$4.99	$3.99		42	36
$6.99	$5.99		35	29
$7.99	$6.99		29	26
					TOTAL:

7.For the coming year, Casual Fashions expects expenses of 32%, reductions of 6%, cash discounts of 3.5% and profit of 11%. What initial markup is required?(Hint: Net Sales % is always 100%).

8. A buyer for mens ties has an opening inventory of $15,000 (retail), which carries a 52.5% markup. For the upcoming season, new ties costing $2,100 were added to the inventory. They were marked to sell for $4,200at retail. Find the cumulative markup percent on merchandise handled in this department.

9.Casual Fashions had markdowns of 16.5%, shortages of 1.5%, alteration charges of 2%, employee discounts of 5%and cash discounts of 4%. The initial markup percent was 51%. What was the maintained markup percent(MMU %)?

10.You are planning to purchase a total of1500 sweaters, retailing at $40 each, in a December promotion. You have a markup goal of 47.5%. So far, you have purchased 1250 sweaters, costing $23 each. What is the maximum cost that can be paid for the remaining units in order to make your markup goal?The table below will help you set up the calculations:

	# Units	Retail	Cost	MU%
Total
Purchased
Balance (i.e. remaining Units)