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1. After careful analysis of the economic data from the U. S. Government (use ch

ID: 3008209 • Letter: 1

Question

1. After careful analysis of the economic data from the U. S. Government (use chart below), the accessories store set a sales plan increase for the next season (Feb.- July) of 8.2%. Based on this year's sales plan what is the companies new projected sales plan for the next season?

2. In the prior year same sales period the Accessories store had actual sales of $1,850,000.00. What was the increase/decrease for the sales period and suggest reasons for the change from one season to the next. (Use chart below)

Planned sales On Order Employee Mark Down $ Shortages EOM Stock DOM Stock Total Monthly Needs Planned Needs Open to Buy Mark Down % Feb. $300,000 $125,000 2% $8,000 2% $200,000 $160,000 $506,000 $346,000 $221,000 0.026666667 Mar. $200,000 $30,000 3% $12,000 4% $80,000 $40,000 $288,000 $248,000 $218,000 0.06 Apr. $300,000 $150,000 4% $4,000 5% $110,000 $90,000 $425,000 $335,000 $185,000 0.013333333 May $200,000 $100,000 0% $3,000 7% $90,000 $60,000 $304,000 $244,000 $144,000 0.015 June $400,000 $150,000 5% $18,000 2% $210,000 $150,000 $618,000 $468,000 $318,000 0.045 July $200,000 $30,000 7% $25,000 3% $70,000 $30,000 $276,000 $246,000 $216,000 0.125

Explanation / Answer

ANS i) Feb----Planned Sales---$324600   ,Mar----Planned Sales---$216400   ,Apr----Planned Sales----$324600              May----Planned Sales----$216400   ,June----Planned Sales------$432800   ,July----Planned Sale---$216400      ANS 2) Increase for the Sales period =1850000-1600000/1600000x100 =250000/1600000x100=15.6%