FDM 3553 Merchandise Retail Buying and

Inventory Management

FDM 3553 Merchandise Retail Buying and Inventory Management Ashlyn Graves
 Table of Contents

Table of Contents
Company Info
Basic Math (regular view)
Basic Math (formula view)
Unit I. (regular view)
Unit I. (formula view)
Charts and Graphs
Unit II. (regular view)
Unit II. (formula view)
Unit III. (regular view)
Unit III. (formula view)
Unit IV. (regular view)
Unit IV. (formula view)
Unit V. (regular view)
Unit V. (formula view)

Ashlyn Graves
2/24/2020
 Company Information

1618 Main St, Dallas, TX 75201,

Services: The primary services provided by the company include allowing

customers to have a retail presence in order to purchase various kinds of fashion
products for men, women and kids, that are all marketed and sold by the company
itself. The products sold by the company include designer jewellery, distinctive gifts,
luxurious decor, etcetera.

Ashlyn Graves
2/24/2020
 Basic Math (Regular View)

Questions Percentage Percent Amount Base

50 = _________% of 415 12.05% 50 415
1⁄2 % of $450 = ________ 0.50% $2.25 $450.00
$399.65 = 25.5% of _______ 25.50% $399.65 $1,567.25
6.6% of ________ = $6.25 6.60% $6.25 $94.70
75 = ________% of 99.99 75.01% 75 99.99
5.5% of $2,020.40 = _______ 5.50% $111.12 $2,020.40
12.5 = ________% of 2,500 0.50% 12.5 $2,500.00
$13.50 = 6.75% of ________ 6.75% $13.50 $200.00
45 1⁄2 % of $440.50 = ________ 45.50% $200.43 $440.50
2 = ________% of 4,650 0.04% 2 $4,650.00

Ashlyn Graves
2/24/2020
 Basic Math (Formula View)

Questions Percentage Percent Amount Base

50 = _________% 12.05% 50 415
1⁄2 % of $450 = _ 0.50% $2.25 $450.00
$399.65 = 25.5% o 25.50% $399.65 $1,567.25
6.6% of ________ 6.60% $6.25 $94.70
75 = ________% o 75.01% 75 99.99
5.5% of $2,020.40 5.50% $111.12 $2,020.40
12.5 = ________% 0.50% 12.5 $2,500.00
$13.50 = 6.75% of 6.75% $13.50 $200.00
45 1⁄2 % of $440. 45.50% $200.43 $440.50
2 = ________% of 0.04% 2 $4,650.00

Ashlyn Graves
2/24/2020
 Unit I (Regular View)

$ %
Net Sales $278,000.00 100.00%
1. Determine the net profit or loss in dollars as
a percentage for a small leather goods - Cost of Goods Sold $191,600.00 68.92%
department if: set up a skeletal statement that Gross Margin $86,400.00 31.08%
shows the following figures as dollars and as a - Operating Expenses $78,300.00 28.17%
percentage.
Profit $8,100.00 2.91%

$ %
Net Sales $30,000.00 100.00%
2. Calculate the net sales in dollars and as a - Cost of Goods Sold $15,600.00 52.00%
percentage if: Set up a skeletal statement that
shows the following figures as dollars and as a Gross Margin $14,400.00 48.00%
percentage. - Operating Expenses $14,400.00 48.00%
Profit $0.00 0.00%

$ %
Net Sales $490,000.00 100.00%
3. A drugstore has net sales of $490,000, with the - Cost of Goods Sold $240,000.00 48.98%
cost of merchandise sold at $240,000. If the buyer Gross Margin $250,000.00 51.02%
must achieve a 5% net profit, calculate the
allowable expenses in dollars and as a percentage. - Operating Expenses $225,500.00 46.02%
Set up a skeletal statement that shows the
following figures as dollars and as a percentage. Profit $24,500.00 5.00%

$ %
Net Sales $132,000.00 100.00%
4. The swimwear department of the ABC - Cost of Goods Sold $118,000.00 89.39%
Department Store had the following records: Gross Margin $14,000.00 10.61%
Set up a skeletal statement that shows the
following figures as dollars and as a - Operating Expenses $11,500.00 8.71%
percentage. Profit $2,500.00 1.89%

$ %
Net Sales $100,000.00 100.00%
5. The Rappapart Ribbon Company had the - Cost of Goods Sold $80,000.00 80.00%
following records: Set up a skeletal statement
that shows the following figures as dollars and Gross Margin $20,000.00 20.00%
as a percentage. - Operating Expenses $35,000.00 35.00%
Profit -$15,000.00 -15.00%

$ %
Net Sales $16,000.00 100.00%
6. Note the following figures: Set up a skeletal - Cost of Goods Sold $9,000.00 56.25%
statement that shows the following figures as Gross Margin $7,000.00 43.75%
dollars and as a percentage.

Ashlyn Graves
2/24/2020
 Unit I (Regular View)
6. Note the following figures: Set up a skeletal
statement that shows the following figures as
dollars and as a percentage. - Operating Expenses $6,600.00 41.25%
Profit $400.00 2.50%

$ %
Net Sales $80,000.00 100.00%
7. The linen department had net sales of - Cost of Goods Sold $43,200.00 54.00%
$80,000. There was a 2% loss, and the gross Gross Margin $36,800.00 46.00%
margin was 46%. Set up a skeletal statement
that shows the following figures as dollars and - Operating Expenses $38,400.00 48.00%
as a percentage. Profit -$1,600.00 -2.00%

$ %
Net Sales $220,000.00 100.00%
8. Set up a skeletal statement that shows the - Cost of Goods Sold $110,000.00 50.00%
following figures as dollars and as a Gross Margin $110,000.00 50.00%
percentage. - Operating Expenses $104,500.00 47.50%
Profit $5,500.00 2.50%

$ %
Net Sales $85,000.00 100.00%
9. Using the following figures, set up a skelatal - Cost of Goods Sold $45,000.00 52.94%
profit and loss statement that shows each Gross Margin $40,000.00 47.06%
factor in dollars and a percentage. - Operating Expenses $38,300.00 45.06%
Profit $1,700.00 2.00%

$ %
Net Sales $1,406,250.00 100.00%
10. This year for the Fall period, your entire department was - Cost of Goods Sold $787,500.00 56.00%
estimated to produce a gross margin of $618,750 because the Gross Margin $618,750.00 44.00%
expenses were estimated at $562,500. The projected net profit
for the period was set at 4.0%. Prepare a skeletal profit and - Operating Expenses $562,500.00 40.00%
loss statement showing both dollars and percentages for a
department showing the following figures: Profit $56,250.00 4.00%

$ %
Net Sales $280,000.00 100.00%
11. Prepare a skeletal profit and loss statement - Cost of Goods Sold $150,000.00 53.57%
showing both dollars and percentages for a
department showing the following figures:
Ashlyn Graves
2/24/2020
 Unit I (Regular View)
11. Prepare a skeletal profit and loss statement
showing both dollars and percentages for a Gross Margin $130,000.00 46.43%
department showing the following figures: - Operating Expenses $138,400.00 49.43%
Profit -$8,400.00 -3.00%

Ashlyn Graves
2/24/2020
 Unit I (Formula View)

$ %
profit or loss in dollars Net Sales ### ###
as a percentage for a
small leather goods of Goods Sold ### ###
department if: set up a Gross Margin ### ###
skeletal statement that ting Expenses ### ###
shows the following
figures as dollars and as Profit ### ###

$ %
2. Calculate the net Net Sales ### ###
sales in dollars and as a
percentage if: Set up a of Goods Sold ### ###
skeletal statement that Gross Margin ### ###
shows the following ting Expenses ### ###
figures as dollars and as
a percentage. Profit $0.00 ###

buyer must achieve a 5% $ %

net profit, calculate the Net Sales ### ###
allowable expenses in
dollars and as a of Goods Sold ### ###
percentage. Set up a Gross Margin ### ###
skeletal statement that
shows the following ting Expenses ### ###
figures as dollars and as a
percentage. Profit ### ###

$ %
Department Store had
the following records: Net Sales ### ###
Set up a skeletal of Goods Sold ### ###
statement that shows Gross Margin ### ###
the following figures as
dollars and as a ting Expenses ### ###
percentage. Profit ### ###

5. The Rappapart $ %
Ribbon Company had Net Sales ### ###
the following records: of Goods Sold ### ###
Set up a skeletal
statement that shows Gross Margin ### ###
the following figures as ting Expenses ### ###
dollars and as a Profit ### ###
percentage.
$ %
6. Note the following Net Sales ### ###
figures: Set up a of Goods Sold ### ###
skeletal statement that
shows the following Gross Margin ### ###
figures as dollars and as
a percentage.
Ashlyn Graves
2/24/2020
6. Note the following
figures: Set up a Unit I (Formula View)
skeletal statement that
shows the following
figures as dollars and as ting Expenses ### ###
a percentage. Profit ### ###

$ %
was a 2% loss, and the
gross margin was 46%. Net Sales ### ###
Set up a skeletal of Goods Sold ### ###
statement that shows Gross Margin ### ###
the following figures as
dollars and as a ting Expenses ### ###
percentage. Profit ### ###

$ %
Net Sales ### ###
8. Set up a skeletal
statement that shows of Goods Sold ### ###
the following figures as Gross Margin ### ###
dollars and as a ting Expenses ### ###
percentage.
Profit ### ###

$ %
9. Using the following Net Sales ### ###
figures, set up a skelatalof Goods Sold ### ###
profit and loss
statement that shows Gross Margin ### ###
each factor in dollars ting Expenses ### ###
and a percentage. Profit ### ###

$ %
margin of $618,750 because the
expenses were estimated at Net Sales ### ###
$562,500. The projected net
profit for the period was set at of Goods Sold ### ###
4.0%. Prepare a skeletal profit Gross Margin ### ###
and loss statement showing
both dollars and percentages ting Expenses ### ###
for a department showing the
following figures: Profit ### ###

$ %
11. Prepare a skeletal Net Sales ### ###
profit and loss
statement showing of Goods Sold ### ###

Ashlyn Graves
2/24/2020
 Unit I (Formula View)
statement showing
both dollars and Gross Margin ### ###
percentages for a ting Expenses ### ###
department showing
the following figures: Profit ### ###

Ashlyn Graves
2/24/2020
 Unit II (Regular View)

1. Fill in the blank spaces for each of the exercizes below

Column1 retail cost MU$ MU%
a. $5.00 $2.70 $2.30 46.00%
b. $14.95 $7.50 $7.45 49.83%
c. $200.00 $110.00 $90.00 45.00%
d. $12.00 $5.00 $7.00 58.33%
e. $22.20 $15.00 $7.20 48.00%
f. $62.31 $42.50 $19.81 46.60%
g. $120.00 $61.20 $58.80 49.00%
h. $90.00 $45.00 $45.00 50.00%
i. $29.00 $15.00 $14.00 48.28%
j. $101.00 $56.00 $45.00 44.55%
k. $72.00 $37.44 $34.56 52.00%
l. $3.50 $1.32 $2.18 37.80%
m. $12.85 $8.80 $4.05 46.00%
n. $1.86 $1.25 $0.61 48.50%
o. $0.98 $1.80 $0.82 45.50%
p. $9.50 $72.00 -$62.50 -657.89%
q. $465.00 $245.00 $220.00 47.31%
r. $590.00 $320.00 $270.00 45.76%
s. $1.60 $9.60 -$8.00 -500.00%
t. $29.95 $25.50 $1.17 3.92%

2. The children’s buyer (Department 49) had a group of 150 ski jackets,
style #2000, vendor #87, priced at $75 each. The weather was warm, and
sales were poor on this particular style. After 25 pieces sold, the buyer
decided to reduce them to $68. At this price, 90 pieces sold. The
remaining pieces were broken in size and color, so the buyer decided to
clear them from stock and further reduced them to $58. What is total
markdown percentage?

Price MD #origional #sold #left NS

OP $75.00 150 25 125 $1,875.00
NP1 $68.00 $7.00 125 90 35 $6,120.00
NP2 $58.00 $10.00 35 35 0 $2,030.00
Total $10,025.00

Ashlyn Graves
2/24/2020
 Unit II (Regular View)

TMD $1,225.00
TMD% 12.22%

3. A buyer had a special selling

price group of 100 faux snake
skin belts marked at 15 each. At
the end of the season, the 20
pieces that were unsold were
reduced to 13 each and sold out
immediately. What is the
markdown % on this purchase?

Price MD #origional #sold #left NS

OP $15.00 100 80 20 $1,200.00
NP1 $13.00 $2.00 20 20 0 $260.00
Total $1,460.00

TMD $40.00
TMD% 2.74%

Ashlyn Graves
2/24/2020
 Unit II (Regular View)

4. The men's clothing buyer had a

group of 200 jackets priced at
$200 each that were selling very
slowly. To stimulate sales of
these jackets, the buyer
permanently reduced the price of
jackets in that group to $175 for
150 jackets. At this price, 40
pieces were sold in a short time.
At a later date, the remaining
pieces became shopworn and
needed a further reduction to
clear them from stock. They
buyer reduced them to $100 each
and at that price they all sold out.
What was the total dollar
markdown% of this item group?

Price MD #origional #sold #left NS

OP $200.00 200 50 150 $10,000.00
NP1 $175.00 $15.00 150 40 110 $7,000.00
NP2 $100.00 $75.00 110 110 0 $11,000.00
Total $28,000.00

TMD $10,500.00
TMD% 37.50%

Ashlyn Graves
2/24/2020
 Unit II (Regular View)

5. Down quilts costing $80 per

unit were promoted at an
advertised retail price of $150
each. Of the 800 pieces, 600 sold
at full price, and another 140 sold
at a one day special mid-season
sale $125 each. An additional 35
were cleared at $85 in the
markdown corner. The remaining
samples were sold at $20. What
is the markdown % on this
purchase?

Price MD #origional #sold #left NS

OP $150.00 800 600 200 $90,000.00
NP1 $125.00 $25.00 200 140 60 $17,500.00
NP2 $85.00 $40.00 60 35 25 $2,975.00
NP3 $20.00 $65.00 25 25 0 $500.00
Total $110,975.00

TMD $9,025.00
TMD% 8.13%

A retailer purchased slippers

from a new resource.In
evaluating the purchase, the
records indicated that the total
purchase of 500 pairs of slippers
originally retailed for $10 per
pair. At this price, 300 pairs were
sold and 200 pairs were left. The
first markdown to $7 resulted in
the sale

Ashlyn Graves
2/24/2020
 Unit II (Regular View)

Price MD #origional #sold #left NS

OP $10.00 500 300 200 $3,000.00
NP1 $7.00 $3.00 200 50 150 $350.00
NP2 $5.00 $2.00 150 150 0 $750.00
Total $4,100.00

TMD $900.00
TMD% 21.95%

Ashlyn Graves
2/24/2020
 Unit II (Formula View)

1. Fill in the blank spaces for each of the exercizes below

Column retail cost MU$ MU%
a. $5.00 $2.70 $2.30 46.00%
b. $14.95 $7.50 $7.45 49.83%
c. $200.00 $110.00 $90.00 45.00%
d. $12.00 $5.00 $7.00 58.33%
e. $22.20 $15.00 $7.20 48.00%
f. $62.31 $42.50 $19.81 46.60%
g. $120.00 $61.20 $58.80 49.00%
h. $90.00 $45.00 $45.00 50.00%
i. $29.00 $15.00 $14.00 48.28%
j. $101.00 $56.00 $45.00 44.55%
k. $72.00 $37.44 $34.56 52.00%
l. $3.50 $1.32 $2.18 37.80%
m. $12.85 $8.80 $4.05 46.00%
n. $1.86 $1.25 $0.61 48.50%
o. $0.98 $1.80 $0.82 45.50%
p. $9.50 $72.00 -$62.50 -657.89%
q. $465.00 $245.00 $220.00 47.31%
r. $590.00 $320.00 $270.00 45.76%
s. $1.60 $9.60 -$8.00 -500.00%
t. $29.95 $25.50 $1.17 3.92%

2.)

2. The children’s buyer (Department 49)

had a group of 150 ski jackets, style
#2000, vendor #87, priced at $75 each.
The weather was warm, and sales were
poor on this particular style. After 25
pieces sold, the buyer decided to reduce
them to $68. At this price, 90 pieces
sold. The remaining pieces were broken
in size and color, so the buyer decided
to clear them from stock and further
reduced them to $58. What is total
markdown percentage?
Price MD #origional #sold #left NS
OP $75.00 150 25 125 $1,875.00
NP1 $68.00 $7.00 125 90 35 $6,120.00
NP2 $58.00 $10.00 35 35 0 $2,030.00
Total $10,025.00

Ashlyn Graves
2/24/2020
 Unit II (Formula View)

TMD $1,225.00
TMD% 12.22%

3. A buyer had a special selling price group

of 100 faux snake skin belts marked at 15
each. At the end of the season, the 20 pieces
that were unsold were reduced to 13 each and
sold out immediately. What is the markdown
% on this purchase?

Price MD #origional #sold #left NS

OP $15.00 100 80 20 $1,200.00
NP1 $13.00 $2.00 20 20 0 $260.00
Total $1,460.00
TMD $40.00
TMD% 2.74%

4. The men's clothing buyer had a group of

200 jackets priced at $200 each that were
selling very slowly. To stimulate sales of
these jackets, the buyer permanently reduced
the price of jackets in that group to $175 for
150 jackets. At this price, 40 pieces were sold
in a short time. At a later date, the remaining
pieces became shopworn and needed a
further reduction to clear them from stock.
They buyer reduced them to $100 each and at
that price they all sold out. What was the
total dollar markdown% of this item group?

Price MD #origional #sold #left NS

OP $200.00 200 50 150 $10,000.00
NP1 $175.00 $15.00 150 40 110 $7,000.00
NP2 $100.00 $75.00 110 110 0 $11,000.00
Total $28,000.00

TMD $10,500.00
TMD% 37.50%

Ashlyn Graves
2/24/2020
 Unit II (Formula View)

5. Down quilts costing $80 per unit were

promoted at an advertised retail price of $150
each. Of the 800 pieces, 600 sold at full
price, and another 140 sold at a one day
special mid-season sale $125 each. An
additional 35 were cleared at $85 in the
markdown corner. The remaining samples
were sold at $20. What is the markdown %
on this purchase?

Price MD #origional #sold #left NS

OP $150.00 800 600 200 $90,000.00
NP1 $125.00 $25.00 200 140 60 $17,500.00
NP2 $85.00 $40.00 60 35 25 $2,975.00
NP3 $20.00 $65.00 25 25 0 $500.00
Total $110,975.00

TMD $9,025.00
TMD% 8.13%
A retailer purchased slippers from a new
resource.In evaluating the purchase, the
records indicated that the total purchase of
500 pairs of slippers originally retailed for
$10 per pair. At this price, 300 pairs were
sold and 200 pairs were left. The first
markdown to $7 resulted in the sale

Price MD #origional #sold #left NS

OP $10.00 500 300 200 $3,000.00
NP1 $7.00 $3.00 200 50 150 $350.00
NP2 $5.00 $2.00 150 150 0 $750.00
Total $4,100.00

TMD $900.00
TMD% 21.95%

Ashlyn Graves
2/24/2020
 Unit lll (regular view)

11. a hosiery buyer has an opening stock figure of $180,000, at retail, which
carries a 52% markup. On March 31, new purchases since the start of the
period were $990,000 at retail, carrying a 54% markup. Find the cumulatiive
markup percentage on merchandise handled in this department to date.

Retail Cost mu% Cost%

Opening Stock $180,000.00 $86,400.00 52.00% 48.00%
New Purchases $990,000.00 $455,400.00 54.00% 46.00%
Total $1,170,000.00 $541,800.00 53.69% 46.31%

13. A belt department had an opening inventory of $95,000 at retail, with a 55.8% markup. Purchases during Novemb
were $64,000 at cost, and $142,000 at retail.

Retail Cost mu% Cost%

Opening Stock $95,000.00 $41,990.00 55.80% 44.20%
New Purchases $142,000.00 $64,000.00 54.93% 45.07%
Total $237,000.00 $105,990.00 55.28% 44.72%

27. A buyer for the exclusive Britique Shop purchased 100 cashmere pullover sweaters at $41 each and priced them
$90 retail. Also planned is a purchase of 70 shetland/mohair blend bulk knit pullovers to retail at $50 each.
Departmental goal markup is 51.8%. How much can be paid for each Shetland/mohair pullover?

Number Retail Cost Total Retail Total Cost

Cashmere 100 $90.00 $41.00 $9,000.00 $4,100.00
Pullover 70 $50.00 $50.00 $3,500.00 $3,500.00
Total 170 $73.53 $12,500.00

48. A children’s apparel buyer is offered a lot of denim jackets consisting of 125 toddler boys’ jackets at $20 each an
160 toddler girls’ jackets at $25 each. All the jackets will be sold at the same retail price. If the buyer is to make a 54
markup on the entire transaction, at what price must each jacket be retailed?

Number Retail Cost Total Retail Total Cost

Ashlyn Graves
2/24/2020
 Unit lll (regular view)

Boys 125 $24.79 $20.00 $2,500.00

Girls 160 $24.79 $25.00 $4,000.00
Total 285 $49.58 $45.00 $14,130.43 $6,500.00

5. During the fall season, a retailer determined that the total amount of merchandise required next season
to meet planned sales was $350,000, at retail, with an initial markup goal of 52%. At the beginning of the
next season, the merchandise on hand (opening inventory) came to $80,000 at retail, with a cumulative
markup of 49% on these goods. For the coming season, what initial markup percentage does the buyer
need to achieve on any new purchases.

Retail Cost MU % Cost %

OS $ 80,000.00 $ 40,800.00 49.00% 51.00%
NP $ 270,000.00 $ 127,200.00 52.89% 47.11%
Total $ 350,000.00 $ 168,000.00 52.00% 48.00%

6. An outerwear buyer confirms an order reading as follows:

• 145 tailored raincoats costing $45 each.
• 75 three-quarter-length rainjackets costing $25 each.

Number Retail Cost T. Retail T. Cost

Raincoats 145 $ 85.00 $ 45.00 $ 12,325.00 $ 6,525.00
Rainjackets 75 $ 51.05 $ 25.00 $ 3,828.85 $ 1,875.00
Total $ 70.00 $ 16,153.85 $ 8,400.00

7. In preparation for a foreign buying trip, a buyer determines that a 55.4% markup is required on
purchases that will amount to $560,000 at retail. While on this trip the following purchases were made
from Resource A, B and C: He is planning to purchase the rest of the purchases from Resource D. What
markup percentage is needed for the purchases from Resource D?

Retail Cost MU % Cost %

Resource A $ 45,000.00 $ 20,000.00
Resource B $ 125,000.00 $ 50,000.00
Resource C $ 170,000.00 $ 70,000.00
Resource D $ 220,000.00 $ 109,760.00 50.11% 49.89%
Total $ 560,000.00 $ 249,760.00 55.40% 44.60%

Ashlyn Graves
2/24/2020
 Unit lll (regular view)

8. A separates buyer–who operates on a 51% markup–needs 300 skirts to retail at $30 each and 180
sweater vests to retail at $25 each. If this buyer pays $11.75 for each sweater vest, how much can be spent
for each skirt, without deviating from the target markup percentage?

Number Retail Cost T. Retail T. Cost

Skirts 300 $ 30.00 $ 15.00 $ 9,000.00 $ 4,500.00
Vests 180 $ 25.00 $ 11.75 $ 4,500.00 $ 2,115.00
Total 480 $ 28.13 $ 13,500.00 $ 6,615.00

9. A December promotion of 1,500 crystal bud vases to retail at $40 each is planned. The buyer requires a
48.5% average markup and has made an initial purchase consisting of 1,200 units costing $25 each. What
is the cost to be paid on each remaining unit?

Number Retail Cost T. Retail T. Cost

OS 1200 $ 48.54 $ 25.00 $ 58,252.43 $ 30,000.00
PS 1500 $ 40.00 $ 20.60 $ 60,000.00 $ 30,900.00
Total 2700 $ 118,252.43 $ 60,900.00

Ashlyn Graves
2/24/2020
 Unit lll (regular view)

markup. Purchases during November

weaters at $41 each and priced them at

t pullovers to retail at $50 each.
Shetland/mohair pullover?

MU% Cost%

51.80% 48.20%

toddler boys’ jackets at $20 each and

il price. If the buyer is to make a 54%
cket be retailed?

MU% Cost%

Ashlyn Graves
2/24/2020
 Unit lll (regular view)

54.00% 46.00%

ise required next season

. At the beginning of the
etail, with a cumulative
centage does the buyer

MU% Cost %

48.00% 52.00%

arkup is required on
g purchases were made
from Resource D. What
e D?

Ashlyn Graves
2/24/2020
 Unit lll (regular view)

l at $30 each and 180

, how much can be spent
ntage?

MU% Cost %

51.00% 49.00%

ed. The buyer requires a

costing $25 each. What

MU% Cost %

48.50% 51.50%

Ashlyn Graves
2/24/2020
 Unit lll (formula view)

11. a hosiery buyer has an opening stock figure of $180,000, at retail, which
carries a 52% markup. On March 31, new purchases since the start of the
period were $990,000 at retail, carrying a 54% markup. Find the cumulatiive
markup percentage on merchandise handled in this department to date.

Retail Cost mu% Cost%

Opening Stock $180,000.00 $86,400.00 52.00% 48.00%
New Purchases $990,000.00 $455,400.00 54.00% 46.00%
Total $1,170,000.00 $541,800.00 53.69% 46.31%

13. A belt department had an opening inventory of $95,000 at retail, with a 55.8% markup. Purchases during Novemb
were $64,000 at cost, and $142,000 at retail.

Retail Cost mu% Cost%

Opening Stock $95,000.00 $41,990.00 55.80% 44.20%
New Purchases $142,000.00 $64,000.00 54.93% 45.07%
Total $237,000.00 $105,990.00 55.28% 44.72%

27. A buyer for the exclusive Britique Shop purchased 100 cashmere pullover sweaters at $41 each and priced them
$90 retail. Also planned is a purchase of 70 shetland/mohair blend bulk knit pullovers to retail at $50 each.
Departmental goal markup is 51.8%. How much can be paid for each Shetland/mohair pullover?

Number Retail Cost Total Retail Total Cost

Cashmere 100 $90.00 $41.00 $9,000.00 $4,100.00
Pullover 70 $50.00 $50.00 $3,500.00 $3,500.00
Total 170 $73.53 $12,500.00

48. A children’s apparel buyer is offered a lot of denim jackets consisting of 125 toddler boys’ jackets at $20 each an
160 toddler girls’ jackets at $25 each. All the jackets will be sold at the same retail price. If the buyer is to make a 54
markup on the entire transaction, at what price must each jacket be retailed?

Number Retail Cost Total Retail Total Cost

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2/24/2020
 Unit lll (formula view)

Boys 125 $24.79 $20.00 $2,500.00

Girls 160 $24.79 $25.00 $4,000.00
Total 285 $49.58 $45.00 $14,130.43 $6,500.00

5. During the fall season, a retailer determined that the total amount of merchandise required next season
to meet planned sales was $350,000, at retail, with an initial markup goal of 52%. At the beginning of the
next season, the merchandise on hand (opening inventory) came to $80,000 at retail, with a cumulative
markup of 49% on these goods. For the coming season, what initial markup percentage does the buyer
need to achieve on any new purchases.

Retail Cost MU % Cost %

OS $ 80,000.00 $ 40,800.00 49.00% 51.00%
NP $ 270,000.00 $ 127,200.00 52.89% 47.11%
Total $ 350,000.00 $ 168,000.00 52.00% 48.00%

6. An outerwear buyer confirms an order reading as follows:

• 145 tailored raincoats costing $45 each.
• 75 three-quarter-length rainjackets costing $25 each.

Number Retail Cost T. Retail T. Cost

Raincoats 145 $ 85.00 $ 45.00 $ 12,325.00 $ 6,525.00
Rainjackets 75 $ 51.05 $ 25.00 $ 3,828.85 $ 1,875.00
Total $ 70.00 $ 16,153.85 $ 8,400.00

7. In preparation for a foreign buying trip, a buyer determines that a 55.4% markup is required on
purchases that will amount to $560,000 at retail. While on this trip the following purchases were made
from Resource A, B and C: He is planning to purchase the rest of the purchases from Resource D. What
markup percentage is needed for the purchases from Resource D?

Retail Cost MU % Cost %

Resource A $ 45,000.00 $ 20,000.00
Resource B $ 125,000.00 $ 50,000.00
Resource C $ 170,000.00 $ 70,000.00
Resource D $ 220,000.00 $ 109,760.00 50.11% 49.89%
Total $ 560,000.00 $ 249,760.00 55.40% 44.60%

Ashlyn Graves
2/24/2020
 Unit lll (formula view)

8. A separates buyer–who operates on a 51% markup–needs 300 skirts to retail at $30 each and 180
sweater vests to retail at $25 each. If this buyer pays $11.75 for each sweater vest, how much can be spent
for each skirt, without deviating from the target markup percentage?

Number Retail Cost T. Retail T. Cost

Skirts 300 $ 30.00 $ 15.00 $ 9,000.00 $ 4,500.00
Vests 180 $ 25.00 $ 11.75 $ 4,500.00 $ 2,115.00
Total 480 $ 28.13 $ 13,500.00 $ 6,615.00

9. A December promotion of 1,500 crystal bud vases to retail at $40 each is planned. The buyer requires a
48.5% average markup and has made an initial purchase consisting of 1,200 units costing $25 each. What
is the cost to be paid on each remaining unit?

Number Retail Cost T. Retail T. Cost

OS 1200 $ 48.54 $ 25.00 $ 58,252.43 $ 30,000.00
PS 1500 $ 40.00 $ 20.60 $ 60,000.00 $ 30,900.00
Total 2700 $ 118,252.43 $ 60,900.00

Ashlyn Graves
2/24/2020
 Unit lll (formula view)

markup. Purchases during November

weaters at $41 each and priced them at

t pullovers to retail at $50 each.
Shetland/mohair pullover?

MU% Cost%

51.80% 48.20%

toddler boys’ jackets at $20 each and

il price. If the buyer is to make a 54%
cket be retailed?

MU% Cost%

Ashlyn Graves
2/24/2020
 Unit lll (formula view)

54.00% 46.00%

ise required next season

. At the beginning of the
etail, with a cumulative
centage does the buyer

MU% Cost %

48.00% 52.00%

arkup is required on
g purchases were made
from Resource D. What
e D?

Ashlyn Graves
2/24/2020
 Unit lll (formula view)

l at $30 each and 180

, how much can be spent
ntage?

MU% Cost %

51.00% 49.00%

ed. The buyer requires a

costing $25 each. What

MU% Cost %

48.50% 51.50%

Ashlyn Graves
2/24/2020
 Unit lV (regular view)

1. Opening inventory at retail for an outerwear department

is $175,000. Purchases retail for the following six-month
period are $490,000, net sales are $400,000,
markdowns are $30,000, returns to vendors are $10,000,
transfers (transfers out) to the third floor boutique are
$15,000, and employee discounts are $6,000. Find the
retail book inventory at the end of this six-month period.

Increasing Factors Decreasing Factors

OE $175,000.00 NS $400,000.00
Purchases $490,000.00 RTV $10,000.00
Trans. In ED $6,000.00
MD $30,000.00
T-out $15,000.00
Total $665,000.00 - Total $461,000.00 = $204,000.00 BI at Retail

2. The following figures are from a small boutique, which has a 49% MU:

Increasing Factors Decreasing Factors

OE $16,000.00 NS $31,000.00
Purchases $40,000.00 RTV
Trans. In ED
MD $2,000.00
T-out
Total $56,000.00 - Total $33,000.00 = $23,000.00 BI at Retail
$11,730.00 BI at Cost
49.00% MU%
51.00% Cost%

3. A costume jewelry department showed the following figures for a six-month

Increasing Factors Decreasing Factors

OE $64,000.00 NS $125,000.00
Purchases $105,000.00 RTV
Trans. In ED $2,600.00
MD $9,000.00

Ashlyn Graves
2/24/2020
 Unit lV (regular view)

T-out
Total $169,000.00 - Total $136,600.00 = $32,400.00
- $3,100.00 Physical Count
$29,300.00 Shortage $
23.44% Shortage %

4. Find the shortage or overage percentage if:

Increasing Factors Decreasing Factors

OE $140,000.00 NS $137,000.00
Purchases $96,000.00 RTV
Trans. In ED $1,000.00
MD $7,000.00
T-out
Total $236,000.00 - Total $145,000.00 = $91,000.00
$89,150.00
$1,850.00 Shortage $
1.35% Shortage %

Ashlyn Graves
2/24/2020
 Unit lV (regular view)

% MU:

x-month

Ashlyn Graves
2/24/2020
Unit lV (regular view)

Ashlyn Graves
2/24/2020
 Unit IV (formula view)

1. Opening inventory at retail

for an outerwear department
is $175,000. Purchases retail
for the following six-month
period are $490,000, net sales
are $400,000,
markdowns are $30,000,
returns to vendors are
$10,000, transfers (transfers
out) to the third floor
boutique are $15,000, and
employee discounts are
$6,000. Find the retail book
inventory at the end of this
six-month period.
Increasing Decreasing
Factors Factors

OE ### NS ###

Purch RT
ases ### V ###
Trans.
In ED ###
M
D ###

T-
out ###

To
Total ### - tal ### = ### BI at Retail
2. The following figures are from a small boutique, which
has a 49% MU:
Increasing Decreasing
Factors Factors

OE ### NS ###

Purch RT
ases ### V

Ashlyn Graves
2/24/2020
 Unit IV (formula view)

Trans.
In ED
M
D ###

T-
out

- To
Total ### tal ### = ### BI at Retail
### BI at Cost
### MU%
### Cost%
3. A costume jewelry department showed the following
figures for a six-month
Increasing Decreasing
Factors Factors

OE ### NS ###

Purch RT
ases ### V
Trans.
In ED ###
M
D ###

T-
out

-
To
Total ### tal ### = ###
- ### Physical Count
### Shortage $
### Shortage %

4. Find the shortage or overage percentage if:

Increasing Decreasing
Factors Factors

Ashlyn Graves
2/24/2020
 Unit IV (formula view)

OE ### NS ###

Purch RT
ases ### V
Trans.
In ED ###
M
D ###

T-
out

-
To
Total ### tal ### = ###
###
### Shortage $
1.35% Shortage %

Ashlyn Graves
2/24/2020
 Unit V (regular view)

 FALL  August  September  October  November  December

LY Monthly
$Sales

SALES Plan $ Sales $50,000.00 $43,750.00 $31,250.00 $50,000.00 $50,000.00

% of change
% of PL Sales 20% 17.50% 12.50% 20% 20%
EOM STOCK Plan $ $109,375.00 $93,750.00 $125,000.00 $125,000.00 $87,500.00
Plan $ $5,000.00 $4,375.00 $3,125.00 $5,000.00 $10,000.00
REDUCTIONS
Plan % 10% 10% 10% 10% 20%
Plan $ $125,000.00 $109,375.00 $93,750.00 $125,000.00 $125,000.00

BOM STOCK Plan Stock-

Sales Ratio 2.5 2.5 3 2.5 2.5
SSR

PLANNED
PURCHASES Plan $ $39,375.00 $32,500.00 $65,625.00 $55,000.00 $22,500.00
AT RETAIL

PLANNED
PURCHASES Plan $ $17,718.75 $14,625.00 $29,531.25 $24,750.00 $10,125.00
AT COST
MU% 55%

Ashlyn Graves
2/24/2020
 Unit V (regular view)

SEASON
 January
TOTALS

$25,000.00  $ 250,000.00

20%
10% $300,000.00
$150,000.00
$7,500.00 $35,000.00
30% 14%
$87,500.00

3.5

$95,000.00 $310,000.00

$42,750.00 $139,500.00

Ashlyn Graves
2/24/2020
 Unit V (formula View)

 FALL  August  September October  November December

LY Monthly
$Sales

SALES Plan $ Sales ### $43,750.00 ### ### $50,000.00

% of change
% of PL Sales 20% 17.50% 12.50% 20% 20%
EOM STOCK Plan $ ### $93,750.00 ### ### $87,500.00
Plan $ $5,000.00 $4,375.00 $3,125.00 $5,000.00 $10,000.00
REDUCTIONS
Plan % 10% 10% 10% 10% 20%
Plan $ ### ### ### ### ###

BOM STOCK Plan Stock-

Sales Ratio 2.5 2.5 3 2.5 2.5
SSR

PLANNED
PURCHASES AT Plan $ ### $32,500.00 ### ### $22,500.00
RETAIL

PLANNED
PURCHASES AT Plan $ $17,718.75 $14,625.00 $29,531.25 $24,750.00 $10,125.00
COST
MU% 55%
 Unit V (formula View)

SEASON
 January
TOTALS

$25,000.00
 $ 250,000.00

20%
10% ###
###
$7,500.00 ###
30% 14%
$87,500.00

3.5

$95,000.00 ###

$42,750.00 ###