1. Use your inventory report to calculate shrinkage as a percent of sales. What factors might affect the amount of shrinkage in your stock?

Company / Inventory Inventory Levels Beginning Inventory Product Ordered Tops 0 + 1,200 Pants 0 + 1,200 Available for Sale 1,200 1,200 Less Shrinkage Less Sales 35 1,165 33 1,167 Ending Inventory 0 0 Percent of Revenue 1,165 x $30 1,165 x $14 Quarter 5 $34,950 $16,310 $18,640 $46,680 $22,173 $24,507 Tops Sales Cost of Goods Sold Gross Margin of Tops Pants Sales Cost of Goods Sold Gross Margin of Pants Total Revenue Total COGS Total Gross Margin 1,167 * $40 1,167 * $19 42.8% 20.0% 22.8% 57.2% 27.2% 30.0% $81,630 $38,483 $43,147 100.0% 47.1% 52.9%