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1) At the beginning of the month, junior dresses had a retail value of $68,000.

ID: 3143268 • Letter: 1

Question

1) At the beginning of the month, junior dresses had a retail value of $68,000. Sales for the month were $17,500. What was the stock-sales ratio for the month

2) A departent has a planned stock turnover of 2.8 and planned sales of $245,000 for a six-month season. Using the basic stock method, plan the BOM stock for June if planned sales for the month are $50,000.

3) If planned sales for September are $200,000 and the stock-sales ratio is planned at 5, what BOM stock is needed to realize this ratio?

4) A chain store reported sales in 2000 of $306,510,000. If 2001 sales were $369,841,000, what was the percentage increase?

Explanation / Answer

1) Stock-to-Sales Ratio = Beginning of Month Inventory (Stock) / Projected Sales for the Month

=$68,000/$17,500 = 3.885

4)  2000 ----> $306,510,000

2001 ----> $369,841,000

Total increase = 63331000

percentage increase= 20.66%