Make a 6-month sales plan detailing projected monthly sales, markup expectations, markdowns, gross margin, and inventory turnover.
Question:
Make a 6-month sales plan detailing projected monthly sales, markup expectations, markdowns, gross margin, and inventory turnover. Using the results of your sales plan, make a 6-month income statement projection that includes the direct expenses for your new pandemic-focused campaign.
Your sales plan should include monthly sales, receipts, average inventory, markdowns, cost of goods sold, and gross margin; utilize a bottom-up approach to project out how much unit inventory you will need to carry, your average inventory value based on projected per unit tickets, projected sales based on expected foot traffic and conversion, as well as projected average unit retails based on the expected level of promotion. Be sure to explain all of your assumptions. Utilize footnotes and the appendix to provide further details of your analysis if needed.
Your income statement should include all direct operating expenses associated with the rollout of your product lines, such as the cost of the product development, marketing, and any additional investments; do not include existing distribution or logistics costs unless you expect them to be incremental over your company's existing operations. Your income statement should be rolled up for the 6-month period but shown in the aggregate (do not show monthly financials).
Link to excel sheet with items and prices for reference:
https://1drv.ms/x/s!Ag6WjAqSgm6igTD1EMqFyIh61r5p
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu