The annual merchandise plan




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Read each of the brief scenarios, then u se course content and research to complete the calculations and answer the following questions.  Be sure to answer the questions in complete sentences and show your calculations for each question to support your answers.  

Scenario 1:   In August, the markdowns for the meat department in a grocery store totaled $15,200.  During the same period, total sales for the meat department were $95,000.

  • What was the markdown percentage for the meat department during the month of August?

Scenario 2:   The annual merchandise plan for the electronics department at a local department store called for planned sales of $850,000 and 30.2% in planned markdowns.

  • What is the dollar amount of the planned markdowns for the electronics department?

Scenario 3:  In October, the seafood department in a grocery store marked 200 ten-pound cases of king crab legs down from their original price of $78 to $59.  The October markdown was very successful and all of the ten-pound cases of king crab legs were sold at $59 each.

  • What was the markdown percentage on the ten-pound cases of king crab legs for October?

Scenario 4:  In order to promote sales during a week-long spring sale, the buyer at a kitchen supply store reduced the pricing on 62 five-gallon stainless steel pots from $28 to $20.  44 of the stainless steel pots were sold during the sale, after which the buyer priced the remaining stainless steel pots at $25 apiece.

  • What was the amount of the markdown cancellation for the stainless steel pots?

Scenario 5:   The manager at a local restaurant gets a 30% discount on drink purchases and a 20% discount on sandwich purchases.  The restaurant manager bought two drinks.  One was a fruit smoothie retailing for $3.50 and the other was a large strawberry lemonade retailing for $2.85.  The manager also bought a sandwich retailing for $5.49.  There is a 6.5% tax on all purchases made at the restaurant.

  • Including tax, what is the manager’s total bill for the purchases?

Scenario 6:   A local retailer had a BOM stock of $300,000 at retail at the beginning of May.  Net sales for the month were $146,000 and the EOM stock was $350,000.

  • What was the retailer’s stock turnover for the month of May?

Scenario 7:  During a one month period in a local hardware store, the hand tools product category had an opening inventory of $36,000 at retail.  Net sales for the month were $12,389, and closing inventory was $37,000.

  • What was the percentage rate of stock turnover for the hand tools product category during the month?

Scenario 8: Last year, a local home improvement store had annual sales of $1,650,000, with stock turnover of 4.5 for the year.

  • What was the average dollar stock amount for the home improvement store during the past year?

Scenario 9:  The buyer in the power equipment department at a local garden center has 35 lawnmowers in stock. The buyer maintains a reserve of 12 lawnmowers.  Delivery takes one week and stock is reordered every five weeks.  Sales of these lawnmowers average 10 per week.

  • How many lawnmowers should the power equipment department buyer reorder in order to meet sales and reserve requirements without running out of stock?

Scenario 10:  It takes two weeks for a local office supply store to receive an order for cases of printer paper.  Printer paper is ordered every four weeks.  Currently, the buyer has 60 cases of printer paper on hand and another 50 on order.  Sales are expected to use 40 cases per week and the buyer maintains a reserve of 20 cases. It’s time to reorder printer paper.

  • How many cases of printer paper is the buyer open to receive?