EXAM 2 RTL 3375 (Chapters 5-9)

BOM. May June July Planned Sales $245,500 $310,800 $305,900 Stock to Sales Ratio 4.2 4.9 5.1 Planned BOM$ Calculate the BOM planned dollar amount for May, June and July using stock to sales.

$1,031,100 $1,522,920 $1,560,090

BOM: March April May Total Planned Sales: $445,000 $420,600 $455,700 $1,321,300 Stock to Sales Ratio: 5.3 5.1 5.6 . Planned BOM$: . . . Calculate the BOM planned dollar amount for March, April, and May using the basic stock method and a stock turn of 1.2.

$1,105,650 $1,081,250 $1,116,350

For the 2012 year, the pet accessories department has planned sales of $3,250,000 and for a busy 6-month period, the buyer planned for 43% of the sales to be made during this time. What is the dollar amount to be sold in this 6 month period?

$1,379,500

If a women's shoe buyer achieved sales in her division of $1,500,000 in 2011, and intends to attain a 3% increase in sales for 2012, what dollar amount is the buyer projecting to sell in 2012?

$1,545,000

Use the information provided to calculate OTB: Planned retail purchases $39,000 IMU%= 36% Purchases already made= $13,400

$11,560

Planned Monthly Purchases for April Planned EOM Stock $102,988 Planned Sales $320,565 Planned Markdowns $5,421 Planned BOM $310,598 Planned Purchases at Retail ? Calculate the planned purchases at retail for the month of April using the information above.

$118,376

The monthly sales forecast for the month of August is 16% and the sales goal for the season is $750,000. What is the monthly sales forecast in dollars?

$120,000

A buyer for a shoe store purchases a line of boots which cost $80. The shoe store then marks up the boots 80 more dollars to sell in store. At what price does the customer purchase the boots?

$160

Based on the following information, determine open-to-buy: Planned EOM stock $125,000 Planned sales $270,000 BOM stock $200,000 Merchandise On Order $ 15,000

$180,000

Using the information provided, calculate Midmonth October OTB: Planned sales= $82,000 Sales through Nov. 14th= $38,000 Planned reductions= $9,000 Reductions taken through Nov 14th= $6,500 Planned EOM stock= $23,000 Current Stock=$67,000 October Midmonth OTB = $[x1]

$2,500

Use the following equation to complete the problem below: Cost price/(100%-markup)= retail price The cost of purchasing a basic t-shirt is $5.00. The retailer marks up the t-shirts 75%. What is the retail price of the t-shirts?

$20

If an item was sold for $100.00 and its price is reduced to $80.00, what is the dollar markdown?

$20.00

If an item is sold for $150 dollars and its price is reduced to $125, what is the dollar markdown?

$25.00

If the cost of buying 100 shirts is $2,000 and those 100 shirts retail for $5,000, what is the markup in dollars?

$3,000

BOM March April May 3 Month Total Planned Sales $445,000 $420,600 $455,700 $1,321,300 Stock to Sales Ratio 5.3 5.1 5.6 . Planned BOM$ Using a weeks of supply of 3.33, calculate the BOM for each of the 3 months using the weeks of supply method.

$370,463 $350,150 $379,370

What is the selling price of a sweater which cost $20 with a markup of 50%?

$40

After an annual Christmas sale, a buyer of home goods has 20 coffee pots remaining that were marked down by $10.00 and 10 comforters that were marked down by $30. What should be the total markdown cancellation?

$500.00

After a semi-annual sale, a sleepwear buyer has 25 robes remaining that were marked down by $15.00 and 40 mismatching undergarments which were marked down by $5.00. What should be the total markdown cancellation?

$575.00

Use the information below to calculate the planned seasonal markdown dollar, using a seasonal markdown percentage of 24.3%. August Sales $500,450 September Sales $533,090 October Sales $439,480 November Sales $495,090 December Sales $598,000 January Sales $422,288

$726,180.71

Initial Markup %

(Planned expenses + Planned Operating Profit + Planned Stock Shortages + Markdowns + Employee and Customer Discounts ) / (Planned Net Sales + Stock Shortages + Employee and Customer Discounts + Markdowns) × 100 = Planned Initial Markup %

Markup % (RTL)

(Retail will always = 100%) $ Dollar Markup / $ Retail Price =

Odd Number Pricing

(e.g., $ 5.99 instead of $ 6.00)

Ethnic Origin

-Non-Hispanic whites are projected to become a minority (47%) by 2050 -Hispanics will compose 29% of the U.S. population by 2050, compared with 14% in 2005

Long-term forecast extend for

1 YEAR OR MORE

Markup can be calculated as a percentage of cost. If a product costs $2.00 and retails for $4.00, then there is a _________ % markup of cost.

100%

A retailer received a cash discount of 2% after paying a $5,400 vendor bill early. The retailer incurred the alterations cost of $1,300. With a planned gross margin dollar of the season of $150,693 and planned sales for the season of $344,000, the maintained markup is $[x1]

151,885

If stock levels are $40,000 and sales are $20,000, what is the stock-sales ratio?

2.0

If an item is sold for $15.00 and is marked downed by $3.00, what is the off-price markdown percentage?

20%

If an item is sold for $2,000 and marked down by $500, what is the off-price markdown percentage?

25%

The overall percentage of retail sales in the craft department for the month of October is 12.3%, while the August to January seasonal plan for the department is 47%. Calculate the sales percentage for the month of October in the seasonal plan.

26%

At the beginning of April, a buyer of school supplies has goods on hand that cost $50,000, and that merchandise is on the selling floor for $75,000. During the first week of April, the buyer makes purchases of $20,000 that will retail for $25,000 and has a remaining OTB of $10,000. What is the cumulative markup percentage? Cost Retail Inventory April 1 $50,000 $75,000 Purchases for April $20,000 $25,000 Total Amount of Merchandise $70,000 $100,000

30%

A buyer forecasts sales of $300,000 for the fourth quarter. Planned expenses are $60,000, planned profit is $15,000 and planned reductions are $25,000. What should be the initial markup percent? (please round your decimal to a whole percent)

31%

The original selling price of an item is $79.00 and its markdown price is $59.00, calculate the markdown percentage

33.9%

Calculate the stock turnover using the stock turnover at cost method. Express the answer with 2 decimal places (ex. 9.14). Cogs= $51,900.76 Average Inventory at Cost= $12,413.63 Average Inventory at Retail= $24,827.25 Number of Units Sold= 439 Unit Selling Price= $236.45 Average Number of Units in Stock= 105 Sales=$103,800 Stock Turnover= [x1]

4.18

Planned sales for the season= $3,509,600 Retail purchases for the season= $2,300,800 Planned cost purchases for the season= $678,400 Planned markdowns for the season= $180,530 Using the information above, the gross margin percentage for the season is [x1]%, expressed as a rounded whole percentage (ex. 98%, 54%).

41%

If the original selling price of an item is $20.00 and its markdown price is $14.00, then what is the markdown percentage?

42.9%

A buyer of womenswear buys from a vendor 100 dress shirts costing $40.00 each. They will sell for $80.00 each. Towards the end of the selling season, twenty shirts remained in stock so the buyer placed them on sale for $60.00. What is the initial markup?

50%

A buyer forecasts sales of $80,000 for a 3 month period. Planned expenses are $30,000, planned profit is $10,000, and planned reductions are 12,000. What should be the initial markup percent? (please round your answer to a whole percent)

57%

What is the markup percentage when a pair of jeans has a markup dollar of $60 and a retail price of $100?

60%

If a products initial markup percentage is 38.4%, what is the cost complement? Also, use the cost complement to calculate the planned purchases at cost, if the planned purchases at retail are $89,574.

61.6% $55,177.58

In making a sales forecast, most buyers start with information about

A 6 MONTH PERIOD

Data Warehousing

Acts as a comprehensive single source for sales, margin, inventory, and other key merchandising performance measures

CREATING PRODUCT DIFFERENCES

Brand Names, Licensed Products, Mass Customization

Why is the children's market attractive to retailers?

CHILDREN HAVE SPENDING POWER

Products that the consumer is NOT willing to spend time, money, and effort in locating and evaluating are

CONVENIENCE PRODUCTS

Buying Motives

Convenience Value received Assortment of merchandise Services offered Experienced and courteous sales associates

Selling Price

Cost + Markup = _____________

At which stage of the product life cycle does price-cutting minimize profits?

DECLINE

Data Mining

Data mining software searches through warehoused data to find trends and patterns that might otherwise have gone unnoticed

Licensed Products

Designed and sold through identification with a celebrity or corporate name, logo, slogan, or fictional character

Short-lived fashions are

FADS

Calculating OTB midmonth uses this formula: (planned sales for the month+ sales through the 14th of the month)+ planned reductions for the month+ reductions taken through the 14th of the month-planned EOM stock- current stock

FALSE

In order to determine average retail stock using a 12 month plan, you would use 12BOMs and subtract the last EOM and divide by 13

FALSE

The average retail inventory formula is planned sales for the stock period*stock turnover

FALSE

The stock turnover at retail formula is number of units sold/average inventory at retail

FALSE

The largest category of non-durables is

FOOD

Buyers use forecasts to answer all the following questions

How much to purchase? Should new products be added? What price should be charged?

In recent years, the number of Latinos in the United States has

INCREASED

Today, in the United States, the number of male "homemakers" is

INCREASING

Being overbought usually causes all the following to occur EXCEPT

MAINTAINED MARKUPS WILL INCREASE

Markup % (Cost)

Markup / Cost = ____________

The ___________price is the first price at which merchandise is offered to the customers or the price the manufacturer suggests should be the retail.

ORIGINAL RETAIL

The amount the buyer has left to spend for a period is known as

OTB

In making a sales forecast, most buyers start with information about

PAST SALES

Which one of the following components of a six-month plan would be entered at cost?

PLANNED PURCHASES

Fads

Products that enter the marketplace quickly, are purchased with zeal, and then see sales that decline quickly

In determining planned purchases, which of the following is added to sales?

REDUCTIONS

Retailers welcome the addition of fashion items into their inventory for all the following reasons EXCEPT

Reordering merchandise is easier

Purchases Based on Fashion Appeal

STYLE

Which of the following trends is NOT showing an increase in the United States?

THE BIRTH RATE

In order to determine average retail stock using a 3 month plan, you would use 3BOMs and add the last EOM and divide by 4.

TRUE

The value of stock is also reduced by stock shortages and discounts to employees as well as discounts to special classes of customers as part of a customer loyalty program.

TRUE

When analyzing trends, buyers must realize that a general trend for the country may not be valid for a particular city or region.

TRUE

Markup

The difference between the selling price and the cost price is_________ Retail - Cost = _______________

Loss Leaders

a widely known brand that is sold at a price close to cost

Multiple-Unit Pricing

if one can of soup sells for $1.39, then four cans could be priced at $5.00

PRODUCT LIFE CYCLES

illustrates the expected behavior of a product over its lifetime and there are four stages: 1.intro 2.growth 3.maturity 4.decline

Style

is a basic and distinctive mode of expression—the appearance of a product