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## AMD 376: Merchandising, Planning & Control Notes 4

by: Clare Schubert

24

0

3

# AMD 376: Merchandising, Planning & Control Notes 4 AMD 376

Marketplace > Iowa State University > General > AMD 376 > AMD 376 Merchandising Planning Control Notes 4
Clare Schubert
ISU

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Formulas and examples
COURSE
Merchandising Planning, & Control
PROF.
Amy Dorie
TYPE
Class Notes
PAGES
3
WORDS
KARMA
25 ?

## Popular in General

This 3 page Class Notes was uploaded by Clare Schubert on Monday February 29, 2016. The Class Notes belongs to AMD 376 at Iowa State University taught by Amy Dorie in Spring 2016. Since its upload, it has received 24 views. For similar materials see Merchandising Planning, & Control in General at Iowa State University.

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Date Created: 02/29/16
Mark Up % = Retail – Cost/Retail Cost = Retail X (100% - MU%) Retail = Cost/(100% - MU%) EX: You have \$200 left in your open to buy to purchase tanks from American Apparel. What markup percent would you need to put on the remaining purchases in order to achieve an average markup of 58% for the season? Total Cost = \$366.20 + \$200 = \$566.20 Total Needs Purchases Balance Retail A) \$1,348.10 C) \$696.00 D) \$652.00 Cost \$566.20 B)\$366.20 E)\$200 MU% 58% F) 69.33% A) 566.20/0.42 = \$1,348.10 D) \$1,348.10 - \$696.00 = \$652.10 E) \$566.20 – \$366.20 = \$200.00 F) Retail-Cost/Retail652.10-200/652.10 = 69.33% IMU % = Expenses + Profit + Reductions + AH/WR – Cash Discounts Net Sales + Reductions Reductions = Markdowns + Employee Discount + Customer Discount + Stock Shortages CMU % = (R-C)/R on total merchandise handled (TMH) TMC = opening inventory + purchases MMU% = Net Sales – Gross COGS MMU % = IMU% - (Reductions % X (100% - IMU%) GM % = net sales – net COGS Net sales For the coming year, Casual Fashions expects expenses of 32%, reductions of 6%, cash discounts of 3.5% and profit of 11%. What initial mark up is required? (Hint: What is the net sales percent?). IMU% = 32% + 11% + 6% + 0 – 3.5% 100% + 6% = 45.5%/106% = 42.92% A buyer for men’s ties has an opening inventory of \$15,000 (retail), which carries a 52.5% markup. For the upcoming season, new ties costing \$2,100 were added to the inventory. They were marked to sell for \$4,200 at retail. Find the cumulative markup percent on merchandise handled in this department. CMU % = (R – C)/R Opening Purchases TMH Inventory Retail \$15,000 \$4,200 \$19,200 Cost \$7,125 \$2,100 \$9,225 MU % 52.5% Cost = Retail X (100% - MU%) 15,000 X (100% - 52.5%) = \$7,125 TMH @ Retail = 15,000 + 4,200 = 19,200 TMH @ Cost = 7,125 + 2,100 = 9,225 CMU% = (19,200 – 9,225)/19,200 = 51.95% You are planning to purchase a total of 1500 sweaters, retailing at \$40 each, in a December promotion. You have a markup of 47.5%. So far, you have purchased 1250 sweaters, costing \$23 each. What is the maximum cost that can be paid for the remaining units in order to make your markup goal? Total Needs Purchases Balance Retail \$60,000 1,250 Cost \$31,500 \$28,750 \$2,750 MU% 47.5% Retail = 1500 X \$40 = \$60,000 Cost purchases = 1250 X \$23 = \$28,750 Cost = retail X (100% - MU%) = \$60,000 X (100% - 47.5%) = \$31,500 Balance @ Cost = 31,500 – 28,750 = \$2,750 Balance Units = 1500 – 1250 = 250 unit cost = 2,750/250 = \$11 Casual Fashions had markdowns of 18.5%, shortages of 1.5%, alteration charges of 3%, employee discounts of 5%, and cash discounts of 6%. The initial markup percent was 52%. What was the maintained markup percent (MMU %)? IMU% = expenses + profit +reductions + AH/WR – cash discounts Net sales + reductions Reductions = markdowns + sales discounts + shortages MMU% = IMU% - (reductions X (100% -IMU%) MMU% = 52% - [(18.5% + 5% + 1.5%)(100% - IMU%) = 52% - (25% X 48%) = 40% MMU \$ = Net Sales – Gross COGS MMU % = (Net Sales – Gross COGS)/Net Sales GM \$ = Net Sales – Net COGS GM % = (Net Sales – Net COGS)/Net Sales Net COGS = Gross COGS – Cash Discounts + Alteration/Work Room GM \$ = Net Sales – Net COGS OR  GM\$ = Net Sales – [Gross COGS – Cash Discounts +AH/WR]  GM\$ = Net Sales – Gross COGS + Cash Discounts – AH/WR  GM\$ = MMU\$ + CD – AH/WR GM% = GM\$/NS\$

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