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The men's dress shirt department had been given the following information to use and developing a merchandise plan for the fall-winter season: Planned net sales:
The men's dress shirt department had been given the following information to use and developing a merchandise plan for the fall-winter season: 
Planned net sales: $566,000
Operating expenses: 35.8%
Planned Profit: 4.0%
Markdowns: 15.2%
Stock turnover: 2.9
Month Sales % of Season's Reductions
August 14% 16%
September 15% 12%
October 13% 12%
November 22% 19%
December 24% 20%
January 12% 21%
A. Determine initial markup % and gross margin %.
B. Determine planned sales.
C. Calculate the reductions for each month.
D. Calculate basic stock.
E. Determine BOM stock for each month.
F. Calculate monthly planned purchases at retail.
The men's dress shirt department has been given the following information to use in developing a merchandise plan for the fall-winter season: Planned net sales $566,000 35.8% Operating expenses Planned profit 4.0% Markdowns 15.2% Stock turnover 29 Month Sales % of Season's Reductions August 14% 16% September 15% 12% October 13% 12% November 22% 19% December 24% 20% January 12% 21% A. Determine the initial markup % and gross margin % B. Determine planned sales. C. Calculate the reductions for each month. D. Calculate basic stock E. Determine BOM stock for each month. F. Calculate monthly planned purchases at retail.
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Survey of Accounting
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
3rd Edition
978-1259683794, 77490835, 1259683796, 9780077490836, 978-0078110856
