coluse esined by a prediction to buy a case or for a chain (dersofinstappersteps. This new cuscini e complement et de prestigumentando evidert uptol for the young, uppehoone mode de propulsoking for the walThis new caricati stand in the liter period and was well othed by the clientele Albogh e pridedales plant, il profis performance was more than diupporting Alte lyse fare prend leise, you fica will be on the combined hands in then that fitse your abimate electorale for your risacando the poing factor in te element of my pre det only wipificant, baho berable. Because of the relatahip of pricing pre margis, mas met het unted and maintu apa puidelines and achievement factory pasma. The present to be achieved by copiating the projected da ut ettive, you lewe ben prin additional mail you provide poo margin resulta tuturs in improvement over the following expected guidelines 12 15 a 17% (Aapne pole 17 $0.00 19 Mr.dows $100) 21 SICH 23ping ty S10,000 24 25 min Houder that with propriate planned focust you will be able to afun the route managments, and the phantom bombed could become a malty for tunes . A key facere po napatunali e pengoldie Stet management already established 20% more will traceplating of an initia markup help nustable you mural Yes or Nowy Should you be able to determine the primaria e muitined alphaving calculated the initial martup Whats obepite doming those of Gran Durabene, you know the come MUS der inportant prodit facto becue represents the map on the merchandise in hand at the gaming of the waves the parties during this pened you notice that the opening avf5150,000 carried 52% markup. What if any, effect will the love or murlup eventaperequired of the paches in der Wochit for the sense the multiemerkupa 53% ca) Alloup you will focus on coming the desired malum percentage, you will also have to pay ateitice to the markup dellut. Why? Because these ala, mudo bertugas un projection which could recomand compare how the dollar la cald pre different reflected to 13 Sheld you en higher salata de la bollah will be dictable! . 40 4 4.00 47 51 Mark Shorts Redaccio 50.000 311.00 53 34 55 54 57 18 2.00 12.00 11.0 414 MMM GOS 61 Q 69 To the Sales 65 66 67 Cat Sales tal MUN son 0,000 312.000 71 72 CA Taleed for S472.000 5409.40 Cod TM Ople FO 77 2 H C D A 2 You have been hired by a group of investors to buy and merchandise accesories for their small chain (4 stores) of infant apparel shops. This new classification is to complement and reflect their prestigious , unique merchandise assortments which are targeted for the young, upper income mother and or grandparents looking for the unusual." This new classification was introduced in the Fall/Winter period and was well received by their clientele. Although the projected sales goal was met, the profit performance was more than disappointing After analysis of each market segment und location, your focar will be on the combined merchandise selection factors that form the basis of your ultimate selections suitable for your particular customer group The pricing factor is one the elements that is of major importance and is not only significant, but also observable. Because of the relationship of pricing to gross margin, management has planned und set certain gros marrin guidelines and limitations to assure achieving a more satisfactory grous margin. These figures are to be achieved while accomplishing the projected sales. As an lacentive , you have been promised an additional bonus if you provide grous margin results that are an improvement over the following expected guidelines: 10 11 12 12 14 15 16 17 16 19 20 21 Grosmarin 474% (0 expenses, 4% profit) Sales 5600,000 Markdowns 560,000x100 22 hortages $12,000(246) 23 24 Opening inventory $150,000 25 26 Closing inventory $200,000 27 21 You are confident that with appropriate planning and forecasting you will be able to attain the results management wants, and the phantom bonus mentioned could become a reality for you. Sitation 1. A key factor in pross margen control is the pricing of merchandise. Since management already established a 474% grow margin, will advance planning of an initial markup help were a favorable how margin? Yes or No? Why? Should you be able to determine the gross margin or maintained markup having calculated the initial markup? What is to be gained by determining these two figures Sitution 2. During the course of the series, you know the cumulative MU% is another important profit factor because it represents the markup on the merchandise cu hand at the beginning of the beason, as well as the purchases during this period. You notice that the opening inventory of $150,000 carried a 52,0% markup. What, if any, elfect will this have on the markup percentage required of the tew purchases in order to achieve for the season the cumulative markup of 59%. Situatica 3. Although you will focus on buining the desired markup percentage, you will also have to pay attention to the markup dollar. Why? Because these (sales, markdowns, shortages) are projections which could prove emoticos), compute and compare how the dollar markup could give different results if the actual reductions increased to 13%. Should you aim at a higher initial markup in order to build a cushion" to satisfy the predictable? 29 30 31 32 23 34 35 36 37 39 40 41 42 4 44 45 44 45 46 55 47 Situation 1 43.40% 48 Expenses 4.00% 49 Pofit 50 Gross margin 47.40% 51 52 Markdowns $60,000 10.0094 53 Shortages $12,000 2.00% 54 Reductions 12.00% IMU% $3.04% 56 MMU% 47.40% 57 58 59 60 Situation 2 Retail 61 Opening inventory 62 63 64 Total needs for the season 65 66 Retail CMUX Cost 67 Sales $600,000 GB Markdowns $60,000 69 Shortages $12,000 70 Closing inventory $200,000 71 Total needs for the $872,000 53% 72 $409,840 73 Cost Retail 75 MUN Tots Merch. Needs 76 Opiny 22 $150,000 78 79 80 81 82 52.00% coluse esined by a prediction to buy a case or for a chain (dersofinstappersteps. This new cuscini e complement et de prestigumentando evidert uptol for the young, uppehoone mode de propulsoking for the walThis new caricati stand in the liter period and was well othed by the clientele Albogh e pridedales plant, il profis performance was more than diupporting Alte lyse fare prend leise, you fica will be on the combined hands in then that fitse your abimate electorale for your risacando the poing factor in te element of my pre det only wipificant, baho berable. Because of the relatahip of pricing pre margis, mas met het unted and maintu apa puidelines and achievement factory pasma. The present to be achieved by copiating the projected da ut ettive, you lewe ben prin additional mail you provide poo margin resulta tuturs in improvement over the following expected guidelines 12 15 a 17% (Aapne pole 17 $0.00 19 Mr.dows $100) 21 SICH 23ping ty S10,000 24 25 min Houder that with propriate planned focust you will be able to afun the route managments, and the phantom bombed could become a malty for tunes . A key facere po napatunali e pengoldie Stet management already established 20% more will traceplating of an initia markup help nustable you mural Yes or Nowy Should you be able to determine the primaria e muitined alphaving calculated the initial martup Whats obepite doming those of Gran Durabene, you know the come MUS der inportant prodit facto becue represents the map on the merchandise in hand at the gaming of the waves the parties during this pened you notice that the opening avf5150,000 carried 52% markup. What if any, effect will the love or murlup eventaperequired of the paches in der Wochit for the sense the multiemerkupa 53% ca) Alloup you will focus on coming the desired malum percentage, you will also have to pay ateitice to the markup dellut. Why? Because these ala, mudo bertugas un projection which could recomand compare how the dollar la cald pre different reflected to 13 Sheld you en higher salata de la bollah will be dictable! . 40 4 4.00 47 51 Mark Shorts Redaccio 50.000 311.00 53 34 55 54 57 18 2.00 12.00 11.0 414 MMM GOS 61 Q 69 To the Sales 65 66 67 Cat Sales tal MUN son 0,000 312.000 71 72 CA Taleed for S472.000 5409.40 Cod TM Ople FO 77 2 H C D A 2 You have been hired by a group of investors to buy and merchandise accesories for their small chain (4 stores) of infant apparel shops. This new classification is to complement and reflect their prestigious , unique merchandise assortments which are targeted for the young, upper income mother and or grandparents looking for the unusual." This new classification was introduced in the Fall/Winter period and was well received by their clientele. Although the projected sales goal was met, the profit performance was more than disappointing After analysis of each market segment und location, your focar will be on the combined merchandise selection factors that form the basis of your ultimate selections suitable for your particular customer group The pricing factor is one the elements that is of major importance and is not only significant, but also observable. Because of the relationship of pricing to gross margin, management has planned und set certain gros marrin guidelines and limitations to assure achieving a more satisfactory grous margin. These figures are to be achieved while accomplishing the projected sales. As an lacentive , you have been promised an additional bonus if you provide grous margin results that are an improvement over the following expected guidelines: 10 11 12 12 14 15 16 17 16 19 20 21 Grosmarin 474% (0 expenses, 4% profit) Sales 5600,000 Markdowns 560,000x100 22 hortages $12,000(246) 23 24 Opening inventory $150,000 25 26 Closing inventory $200,000 27 21 You are confident that with appropriate planning and forecasting you will be able to attain the results management wants, and the phantom bonus mentioned could become a reality for you. Sitation 1. A key factor in pross margen control is the pricing of merchandise. Since management already established a 474% grow margin, will advance planning of an initial markup help were a favorable how margin? Yes or No? Why? Should you be able to determine the gross margin or maintained markup having calculated the initial markup? What is to be gained by determining these two figures Sitution 2. During the course of the series, you know the cumulative MU% is another important profit factor because it represents the markup on the merchandise cu hand at the beginning of the beason, as well as the purchases during this period. You notice that the opening inventory of $150,000 carried a 52,0% markup. What, if any, elfect will this have on the markup percentage required of the tew purchases in order to achieve for the season the cumulative markup of 59%. Situatica 3. Although you will focus on buining the desired markup percentage, you will also have to pay attention to the markup dollar. Why? Because these (sales, markdowns, shortages) are projections which could prove emoticos), compute and compare how the dollar markup could give different results if the actual reductions increased to 13%. Should you aim at a higher initial markup in order to build a cushion" to satisfy the predictable? 29 30 31 32 23 34 35 36 37 39 40 41 42 4 44 45 44 45 46 55 47 Situation 1 43.40% 48 Expenses 4.00% 49 Pofit 50 Gross margin 47.40% 51 52 Markdowns $60,000 10.0094 53 Shortages $12,000 2.00% 54 Reductions 12.00% IMU% $3.04% 56 MMU% 47.40% 57 58 59 60 Situation 2 Retail 61 Opening inventory 62 63 64 Total needs for the season 65 66 Retail CMUX Cost 67 Sales $600,000 GB Markdowns $60,000 69 Shortages $12,000 70 Closing inventory $200,000 71 Total needs for the $872,000 53% 72 $409,840 73 Cost Retail 75 MUN Tots Merch. Needs 76 Opiny 22 $150,000 78 79 80 81 82 52.00%