Please Answer from Part 1- Part4. ( Part2,3,4 ARE VERY IMPORTANT)

Part 1: Buy plan
The knit department will be running an ad on short sleeve cotton tee shirts. The buyer estimates she
will need 1,200 units for her ten stores. She must maintain the department mark up goal of 52%.
Her past selling indicates the following % of selling for each color:
Color		%
White		30%
Black		20%
Red		15%
Navy		15%
Gree		10%
Pink		10%
Total		100%
She has noticed that white tee shirt sales have been dropping off, she would like to increase her sales in black
and red. However, the cost is higher in the dark colors. Will she be able to maintain her department's plan
markup of 52% if she changes her purchase to plan for 23% of her sales in black and 17% of her sales in red,
lowering her white to 25% of sales? She is going to retail all colors at $20.00.
What is the most she will be able to pay for the assorted colors and maintain her markup plan?
The same percent by color will be maintained.
Cost price:	Color	Unit price ea
	White	$9.00
	Black	$9.80
	Asst. Color	???
Using the chart below, plan for a purchase of 1,200 units with new sales plan percents by color.
1. Units by color
2. Calculate total cost dollars by color and department total
3. Calculate total retail dollars by color and department total
4. Calculate markup % by color
5. Calculate markup % by total department
Dept Goals
and/or plan	Units	Cost EA	Cost $ Total	Retail EA	Retail $ Total	MU%	C%
White	300	$9.00	$2,700.00	$20.00	$6,000.00	55%	25%
Black	276	$9.80	$2,704.40	$20.00	$5,520.00	51%	23%
Red	204	$9.80	$1,999.20	$20.00	$4,080.00	51%	17%
Navy Blue	180	$9.00	$1,680.00	$20.00	$3,600.00	55%	15%
Green	120	$9.00	$1,080.00	$20.00	$2,400.00	55%	10%
Pink	120	$9.00	$1,080.00	$20.00	$2,400.00	55%	10%
Dept Goal
Total	1200		$11,243.60		$24,000.00		100%

part2

Part 2: Purchase Order:

Use the purchase order below to place an order for the tee shirt promotion.

AAU Retail Store

Purchase Order

79 New Montgomery St

P.O. NUMBER

San Francisco, CA 94105

Vendor Name and Address

Ship To

PURCHASE ORDERS

Department

Department #

Start Ship

Cancellation

FOB

Terms

PO Date

Style Number

Color

Units *

Unit Cost

Total Cost

Unit Retail

Total Retail

Markup %

TOTALS

Buyer Signature

DMM Signature

*Purchase orders can also be divided by specific quantities by store location.

part3

Part 3: Additional calculations:

Using the information from your purchase order you will calculate the amount you will submit to vendor for purchase order #12392, the vendor prepaid the shipping amount of $158.00

The freights terms are FOB Factory

1. Calculate a discount of 10% on the order, which you negotiated on the first cost.

New Total Cost:______________________

2. Calculate the revised markup percent for the order before payment terms are applied.

Revised Markup percent based on discount:________________________

3. Calculate the cash discount to be received if the order is received on March 10^th and paid on April 10^th. _____________________________________

With terms of 8/10EOM

4. How much will the freight amount be for order #12392?______________________________

5. Determine the amount to be paid to the vendor for order #12392______________________

__________________________________________________________________________________

Part 4

Part 4: Markdowns and Maintained Markup

25 points

SKU

Cost $

Retail $

IMU%

Unit Buy

Initital Cost

Initial Retail

Unit Sales

Dollar sales

Sell Through

Units to be

Units sold at

Dollar Sales

Markdown $

Balance on

Dollar Sales

Markdown $

Balance on

Dollar Sales

Markdown $

Total Dollar

Total dollar

Style #71553

$ Total

$ Total

Full Price

at full price

%

Markdown

30% off

at 30% off

at 30% off

Hand

at 50% off

at 50% off

Hand

at 70% off

at 70% off

Sales

Markdown

White

$20.00

36

152

112

10

Black

$20.00

24

128

124

24

Red

$20.00

18

86

100

20

Navy

$20.00

16

78

86

38

Green

$20.00

10

42

68

20

Pink

$20.00

13

46

61

21

Total

orders can also be divided by specific quantities by store location.