Answer the second set of problems #1-5.

Assignment F Calculating Assortment Plans Assortment planning will result in establishing a model stock, which is the desired assortment of stock broken down according to selection factors important to your target market, such as brand, price, material, color, and size. The objective of establishing a model stock is to maximize the sales and profits from your inventory investment. After you have determined the budget for merchandise purchases and examined store records, trends, and external factors affecting sales, you are ready to prepare an assortment plan. SAMPLE PROBLEM Assume that your department is selling sweatshirts. Your research of past sales records indicates that sweatshirts have typically composed 5 percent of total sales for the department. This year total sales are planned at $100,000. From your research you realize that most of your customers for this product are not brand loyal. They will substitute one brand for another if you have the size, color, and style for which they are looking. Past sales records indicate that Russell has been the most popular brand with your customers. You decide to stock only Russell sweatshirts costing $10 each. Because sweatshirts represent 5 percent of your total planned sales ($100,000), you will have S5,000 to spend on sweatshirts (S100,000 x 0.05 S5,000). Because each sweatshirt costs your store S10, you will be able to purchase 500 sweatshirts (S5,000/S10-500) The next step in developing an assortment plan will be to calculate the specific unit breakdowns of these sweatshirts based on the selection factors you have chosen size and color. Russell has these sweatshirts in sizes from extra small to extra-extra large in 20 different colors. By examining past sales records, you determine that the size distribution has been: Medium 20% Large X-Large 50% 30% Basic colors of white and gray have been your best-sellers in the past, each one accounting for 40 percent of sales. Black has been a good seller too, with 20 percent of sales. Based on your plan, you are ready to calculate the number of sweat shirts that you will purchase for each of the sizes and colors selected