Description The Final is divided into five Parts. You will find specific directions to each part of the in the session pages of the module: Six Month Dollar Merchandising Plan Classification Assortment Buy Plan Operating Statement Calculations Conclusion The first three Parts require you to develop and analyze spreadsheets for each phase of the buying process. Part 4 requires you to utilize basic merchandising formulas to solve merchandising problems, and Part 5 asks you to write a conclusion regarding the results of the spreadsheets (i.e. Part 1, Part 2, and Part 3). Please be sure to complete each Part of the in order, following through each portion of the module: much of the information you need to complete later Parts of the will be developed in Part 1, the Six Month Dollar Merchandising Plan. Part 1 Part1: Six-Month Dollar Merchandising Plan Instructions Use the Six Month Dollar Merchandising Plan spreadsheet to create a six-month merchandise plan for a Women's Sportswear department. Using the percents and dollar amounts provided, plan an 8% increase for the next year. You will maintain the same monthly sales percentages, the same stock-to-sales ratios, and the same markdown percents by month as last year. Last years spring season figures were as follows: Departmental Markup: 54% Total Spring Sales Volume: $786,000 End of Season Stock: $257,000. Total Markdowns Planned: 12.5% of Season Sales The table provides the vital figures for last year's Spring Season: Month Pct of Season Sales BOM Stock/Sales Ratio Pct of Season Markdowns Feb 12% 3.1 10.9% Mar 22% 2.1 11.9% Apr 21% 2.5 23.5% May 17% 2.5 22.8% Jun 18% 2.7 19.4% Jul 10% 3.7 11.5% First, calculate last years dollar amounts, using the percentages supplied above. Fill in last years information on the Six Month Merchandising Plan spreadsheet. Ensure that you have accurately filled in the following information: Sales by month. Last years BOM and EOM stock dollars. Last years monthly markdown dollars. Once you have filled in data for sales by month, the BOM and EOM stock dollars, and last year's monthly markdown dollars, calculate the following and fill in the appropriate fields on the spreadsheet: Last years monthly purchases at retail and cost. Last years average stock. Last year's stock-turnover rate. Finally, fill in the "plan" parts of the spreadsheet. Using last years information as the foundation, apply the percentage increase to overall sales and develop a plan for this year using the same monthly percentages. Use the same stock to sales ratio as last year to calculate stock figures. Remember, End of Season Stock for this year is planned at $277,560. Be sure to use the same monthly markdown percent and markup percent to complete the calculations for the "plan" parts of the spreadsheet. Ensure that you plan average stock and turnover calculations before moving on to the next Part of the Final . Part 2 Part 2 :Classification Planning Instructions For this part of the Final , you need to plan purchases of knit tops and sweaters for your Women's Sportswear department. Please use this basic price point data as you fill out the Classification Planning spreadsheet for Knit Tops and develop your retail dollars and unit buy plans: BOM Stock: $173,680 Lower Price Point: $15; contributing 35% of stock purchases Middle Price Point: $35;contributing 50% of stock purchases Upper Price Point: $75; contributing 15% of stock purchases The sales totals for each price point are comprised of sales of different products. Please note the following percentages as you fill out the Style Breakdown for the Lower, Middle, and Upper price points, rounding your calculations to the nearest whole number: Lower Price Point Short Sleeve Tee Shirts: 50% of stock Tank Tops: 35% of stock Three-Quarter Length Sleeve Tee Shirts: 15% of stock Middle Price Point Short Sleeve Patterned Tee Shirts: 35% of stock Embellished Tee Shirts: 35% of stock Polo Short Sleeve Tee Shirts: 30% of stock Upper Price Point Silk/Cotton Cardigans: 30% of stock Embellished Tee Shirts: 30% of stock Patterned Cardigans: 40% of stock Part 3 Part 3: Operating Statement Instructions Use the following information, taken from the Six Month Dollar Merchandising Plan, determine if the Womens Sportswear department is operating at a profit or a loss. Please use the following information to fill out the Gross Sales portion of the Operating Statement spreadsheet. You will use this information to calculate the Net Cost of Goods Sold: Gross Sales: Use Total Season Sales Plan for Spring Returns and Allowances: 5% of Gross Sales Opening Inventory at Cost: $151,576 Purchases at Cost: Use Purchases at Cost for Spring Transportation Charges: $25,000 Ending Inventory at Cost: Use Ending Stock Figures at Retail and Department Markup Percent Workroom expenses: $1,000 Cash Discounts earned: $12,000 Once you have calculated the Net Cost of Goods Sold, you are ready to move onto calculating all expenses associated with the Women's Sportswear Department. Once you have calculated expenses, determine the net profit or loss for the department: Direct Expenses Buying Salaries: $35,000 Sales Salaries: $55,000 Department Advertising: $40,000 Warehouse/Receiving Expense: $20,000 Indirect Expenses Executive Salaries: $40,000 Rent: $65,000 Utilities: $20,000 Maintenance: $10,000 Part 4 Part 4: Calculations Now you must calculate the essential data that you'll need to fully evaluate the efficiency and efficacy of the Women's Sportswear Department. You will be calculating quantities for OTB (Open-to-Buy), Shortage, Dollars per Square Foot, and GMROI. OTB Using the Dollars at Retail determined by your work on the Six Month Dollar Merchandising Plan spreadsheet, calculate the OTB totals for February, March, and April. Use the following On-Order data to complete this calculation: February: $155,000 March: $255,000 April: $78,000 Shortage Determine the Women's Sportswear Department's book stock, using the End Plan Stock figure from your Six Month Dollar Merchandising Plan. Determine whether there was a shortage or overage for the department. Calculate the dollar amount, and use Net Sales to determine the percentage. Please use the following physical inventory total for your calculations: Physical Inventory: $262,370 Dollars Per Square Foot The Women's Sportswear Department at the Flagship Store is 90 feet by 60 feet. The Flagship Store's sales volume comprises 15% of the department's total sales. Use the Net Sales total determined by the Operating Statement spreadsheet to calculate sales for the Flagship Store. Then calculate Dollars per Square Foot for the Spring Season for the Women's Sportswear Department. GMROI Use the Gross Margin Dollars total determined by the Operating Statement spreadsheet, as well as the Average Stock Plan total from the Six Month Dollar Merchandising Plan spreadsheet. Calculate the GMROI for the Spring Season. (Hint: Average Stock Plan is at retail.)