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Just need help with part 6. Katherine Johnson is the owner, manager, and buyer of Katherine's boutique. KB is an independently owned specialty shop for
Just need help with part 6.
Katherine Johnson is the owner, manager, and buyer of Katherine's boutique. KB is an independently owned specialty shop for Juniors and Misses fashion clothing. Located in Lawrence, Kansas, a Midwestern city of 75,000. Lawrence has a college with a population of approximately 40,000 . Many of her customers and employees are college students. As a matter of fact, her most valued employee is a Senior majoring in Business Administration, who wishes to continue working at KB's after graduation in May. Katherine is preparing the budget for the March market in New York. She expects sales, for the Fall and Winter seasons, to increase by 20 percent over last year. Last year's sales for the Fall and Winter seasons were $820,000 in retail dollars. Total yearly sales were $1,750,000. By the end of the season she would like to reduce the level of inventory for the next time period by 15 percent. Consider Fall and Winter to cover six months. The next six months sales are expected to stay stagnant. The five-year average sales for September has been $150,000. The five year annual average sales for the year $1,800,000. Katherine has already ordered $100,000 worth (at cost) of merchandise which will be delivered in August. KB's has averaged a mark up of 60% at retail during the past year and experienced mark downs and shortage of 10% of retail. Beginning Inventory for the season is $175,000. 1. Describe in detail the prebuying process the buyer should go through. 2. Calculate the open to buy. 3. How do you recommend she spend the OTB? For example-indicate her potential sources of merchandise and information about merchandise. 4. What is the best method for "KB's" to use for forecasting? Use this method to forecast for September. 5. Determine the best method for B.O.M inventory for this store and calculate the B.O.M. inventory. 6. What is her stock turnStep by Step Solution
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