Last year's sales for the six-month period of February to July were $336,900. A 5.5 percent increase in sales is anticipated this year. Total reductions for the period are planned at 8 percent. The buyer desires an ending inventory of $115,000 for the period. A 48 percent initial markup is planned. Based on an analysis of past sales records and current market trends, a buyer has also made plans for the period in relation to (1) monthly distribution of sales, (2) monthly stock-to- sales ratios, and (3) monthly distribution of planned reductions. Those planning estimates are presented below: Month Sales Distribution Stock-to-Sales Ratio Reductions Distribution Feb 10% 5% Mar 10% 2.4 5% 35% 2.1 10% May 20% 2.0 20% 15% 30% July 10% 2.0 30% Calculate (1) planned monthly sales, (2) planned monthly BOM, (3) planned monthly EOM, and (4) planned monthly reductions, (5) planned monthly purchases at retail, and (6) planned monthly purchases at cost. 24 Apr NNNNNN 9 June 2.0 FEB MAR APR MAY JUNE JULY TOTALS (1) Sales (2) BOM (3) EOM (4) Reductions (5) Purchases (Retail) (6) Purchases (Cost) Last year's sales for the six-month period of February to July were $336,900. A 5.5 percent increase in sales is anticipated this year. Total reductions for the period are planned at 8 percent. The buyer desires an ending inventory of $115,000 for the period. A 48 percent initial markup is planned. Based on an analysis of past sales records and current market trends, a buyer has also made plans for the period in relation to (1) monthly distribution of sales, (2) monthly stock-to- sales ratios, and (3) monthly distribution of planned reductions. Those planning estimates are presented below: Month Sales Distribution Stock-to-Sales Ratio Reductions Distribution Feb 10% 5% Mar 10% 2.4 5% 35% 2.1 10% May 20% 2.0 20% 15% 30% July 10% 2.0 30% Calculate (1) planned monthly sales, (2) planned monthly BOM, (3) planned monthly EOM, and (4) planned monthly reductions, (5) planned monthly purchases at retail, and (6) planned monthly purchases at cost. 24 Apr NNNNNN 9 June 2.0 FEB MAR APR MAY JUNE JULY TOTALS (1) Sales (2) BOM (3) EOM (4) Reductions (5) Purchases (Retail) (6) Purchases (Cost)