Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The sales performance of the Luggage Department in a Sporting Goods Store last Fall was: August September October November December January $70,000 $90,000 $120,000
The sales performance of the Luggage Department in a Sporting Goods Store last Fall was: August September October November December January $70,000 $90,000 $120,000 $150,000 $160,000 $125,000 Total Seasonal Sales $715,000 As the six-month merchandising plan for this department was being formulated for this fall season, the following decisions were made: 1. A 10% increase in total seasonal sales could be attained this year due to the introduction and addition of a new classification of carry-on travel luggage that is well priced and of exceptional value. This fall, monthly sales distributions (i.e., % of seasonal sales for each month) are expected to be identical to those in last year. 2. The planned BOM stock-sales ratio for each month this year would be the same as last year, i.e., August 3.5, September 3.3, October 3.0, November 2.5, December 2.3, January 2.5 with an ending retail inventory for the period of $181,475.25 (i.e., Jan's EOM). 3. The planned total reductions for last year were 9% of seasonal sales and were distributed with 0% for August, 9% in September, 18% in October, 12% in November, 26% in December and 35% in January. The department expects the same reductions% and monthly reduction distributions for this spring season. Sales Trend% Sales$ LY Sales % of seasonal sales Sales$ TY Plan Stock-Sales Ratio BOM TY Plan EOM TY Plan Reductions TY Plan (% of Seasonal reductions) Reductions TY Plan ($) Purchases$ TY Plan Average Stock-TY Plan Stock Turnover - TY Plan Aug Sep Oct Nov Dec Jan TOTAL no entry needed.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started