Wetod diterent vendors alroody. Bhe plans to buy the

$30$ skits that cod $$120\mathrm{.}00$ wach from a row vandor and the

$20$ polcats thet coet $8720\mathrm{.}00$ wach from tho vender to ahom

noods to buy $40$ dressas. Bhe vilod a now vondor and lound

rataltar's ingo and af bo Nod by the cuatomars:

DisCUSSION CUESTIONS FOR CASE STUDY $1$

Using the intormation provided above, detionn he the lats

nacods at ratal.

In ardar is caibulato the matnum amourt Jarnitar can pay

for the drezese, the noods to know the total nosds at coot.

Iyou ware Jarrilter how would you calculato total nosods at

coen?

unt coet for wach drese? What is the moet Juritter can pey

frr wach dres? II you wore Jerritter erould you purchase the

s$3$a$\mathrm{.}00$ dres tom the naw vandor?

Is Jarnifor having a problam h har budying? It yos,

explain why. What would you rocormend her to sche the

praterm?How Can the Buyer Determine Average Cost?

Marine Aghekyan, Ph$.$D

California State University at Long Beach

Jennifer has recently graduated from a university with a

degree in Fashion Merchandising and has started her career

as a buyer in a midsize women's apparel store in Long Beach,

California. Through her educational pursuits, Jennifer worked

as an intern in two different retailers as an assistant buyer.

During the internship experiences, she was able to apply

many of the mathematical concepts that she had learned in

her merchandising courses. Jennifer's internships were very

successful, and she feels excited and confident in her new

position as a buyer.

The retailer where Jennifer is working as a buyer sells

high$-$quality women's apparel and has been operating

successfully for over $25$ years. The owner tries to offer unique

designs projecting a prestigious image. The retailer's niche

market focuses on professional women who are highly

educated, fashion conscious, and trendy. The retailer has

developed a large number of loyal customers and has good

working relationships with local vendors from whom it has

bought merchandise for over $25$ years.

For the upcoming season, Jennifer needs to buy

$30$ skirts to retail $$192\mathrm{.}00$ each, $20$ jackets to retail $$352\mathrm{.}00$

each, and $40$ dresses to retail $$380\mathrm{.}00$ each. Jennifer also

knows that the store markup goal is $60\%.$ She has a budget

of $$10,500\mathrm{.}00($cost$)$ for the entire purchase. Jennifer has

visited different vendors already. She plans to buy the

$30$ skirts that cost $$120\mathrm{.}00$ each from a new vendor and the

$20$ jackets that cost $$220\mathrm{.}00$ each from the vendor to whom

the store has a very long business relationship. Jennifer still

needs to buy $40$ dresses. She visited a new vendor and found

dresses that cost $$98\mathrm{.}00.$ She thinks that these dresses fit the

retailer's image and will be liked by the customers.

DISCUSSION QUESTIONS FOR CASE STUDY $1$

Using the information provided above, determine the total

needs at retail.

In order to calculate the maximum amount Jennifer can pay

for the dresses, she needs to know the total needs at cost$.$

If you were Jennifer how would you calculate total needs at

cost$?$

Having done all the calculations, how can Jennifer identify

unit cost for each dress? What is the most Jennifer can pay

for each dress? If you were Jennifer would you purchase the

$$98\mathrm{.}00$ dress from the new vendor?

Is Jennifer having a problem in her budgeting? If yes,

explain why. What would you recommend her to solve the

problem?