In mid-October, a key vendor offers a missy top department store buyer a group of long sleeve crew neck knit tops that it had previously purchased. The vendor has 4,800 units of assorted knit tops available that it can sell to the buyer for a reduced cost price of $6.00; the regular cost price of the tops was $9.00. The buyer previously priced these tops at $29.00. In order to secure the reduced cost price, the buyer has to buy the entire 4,800 unit availability. The vendor has the following color assortment: Striped knit tops, 2,400 units Solids of black and ivory, 1,440 units Paisley print knit tops, 960 units The vendor can ship this assortment and it will be in store by the end of October The buyer previously purchased the same tops that started selling in mid-September; approximately four weeks of sales have been recorded. Here is a recap of what was received and what was sold in the four-week time period: Average .Units sold in units sold Units on hand per week mid-October Color/print Units purchased4 weeks 2,700 4,500 1,400 675 1,125 350 Stripes Solids Paisley 10,000 15,000 7,200 ,300 10,500 5,800 As these are long sleeve knit tops, the buyer set an outdate for November 30 (approx imately seven weeks from mid-Octoher) Before the vendor discussed the availability with the buyer, there was a promotion planned on the tops for an Election Day sale at $24.99. The buyer has reviewed the selling and feels the purchase would ultimately be advantageous because increased departmental activity will lead to improved sales. The buyer's planned markup per- centage for November is 64.0%. To make the correct decisions, the following ques- tions must be answered: If the buyer takes advantage of this special purchase, what would the markup for the entire purchase be based on the regular retail price? a. b. What should the knit tops be promoted at for Election Day? Will $24.99 be a significant incentive for customers to buy multiple units, or should the buyer restrategize the pricing for the event? What promotions would you recommend? Based on current selling trends, if the buyer takes in the extra merchandise, will he meet the end-of-November outdate for the product? c. Decide what course of action the buyer should pursue and mathematically justify your suggestions as you apply the principles of pricing and repricing. In mid-October, a key vendor offers a missy top department store buyer a group of long sleeve crew neck knit tops that it had previously purchased. The vendor has 4,800 units of assorted knit tops available that it can sell to the buyer for a reduced cost price of $6.00; the regular cost price of the tops was $9.00. The buyer previously priced these tops at $29.00. In order to secure the reduced cost price, the buyer has to buy the entire 4,800 unit availability. The vendor has the following color assortment: Striped knit tops, 2,400 units Solids of black and ivory, 1,440 units Paisley print knit tops, 960 units The vendor can ship this assortment and it will be in store by the end of October The buyer previously purchased the same tops that started selling in mid-September; approximately four weeks of sales have been recorded. Here is a recap of what was received and what was sold in the four-week time period: Average .Units sold in units sold Units on hand per week mid-October Color/print Units purchased4 weeks 2,700 4,500 1,400 675 1,125 350 Stripes Solids Paisley 10,000 15,000 7,200 ,300 10,500 5,800 As these are long sleeve knit tops, the buyer set an outdate for November 30 (approx imately seven weeks from mid-Octoher) Before the vendor discussed the availability with the buyer, there was a promotion planned on the tops for an Election Day sale at $24.99. The buyer has reviewed the selling and feels the purchase would ultimately be advantageous because increased departmental activity will lead to improved sales. The buyer's planned markup per- centage for November is 64.0%. To make the correct decisions, the following ques- tions must be answered: If the buyer takes advantage of this special purchase, what would the markup for the entire purchase be based on the regular retail price? a. b. What should the knit tops be promoted at for Election Day? Will $24.99 be a significant incentive for customers to buy multiple units, or should the buyer restrategize the pricing for the event? What promotions would you recommend? Based on current selling trends, if the buyer takes in the extra merchandise, will he meet the end-of-November outdate for the product? c. Decide what course of action the buyer should pursue and mathematically justify your suggestions as you apply the principles of pricing and repricing