Lecture #13: The Merchandise Budget

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Six-Month Merchandise Budget
Item Aug Sep Oct Nov Dec Jan Total
1. Planned BOM Stock              
2. Planned Sales              
3. Planned Retail Reductions              
4. Planned EOM Stock              
5. Planned Purchases @ Retail              
6. Planned Purchases @ Cost              
7. Planned Initial Markup              
8. Planned Gross Margin              
9. Planned BOM Stock-to-Sales Ratio 3.0 4.0 3.0 5.0 3.0 4.0 ---
10. Planned Sales % 15% 15% 20% 10% 25% 15% 100%
Planned Retail Reduction % 10% 10% 5% 15% 5% 10% 8.25%

Assignment:

Complete the above six-month merchandise plan. Planned total sales for this six-month period are $500,000, with a planned initial markup percentage for the period of 45%. The planned BOM Stock for February is $250,000.

See the solution here.

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