Answer to Question #175832 in Economics for Priscilla

Question

The sales performance of the Luggage Department in a sporting goods store last Fall was: 

August $80,000 

September $90,000 

October $100,000 

November $140,000 

December $160,000 

And January $120,000 

 

Total LY Sales = $690,000 

As the six-month merchandising plan for this department was being formulated for this Fall season, the following decisions were made: 

1. An 8% sales increase could be attained this year due to the introduction and addition of a new classification of carry-on travel luggage that is well priced and of exceptional value. 
2. The planned BOM stock-to-sales ratio for each month this year would be same as last year: 

August 3.3 

September 3.1 

October 2.9 

November 2.5 

December 2.2 

And January 2.6 

With an ending inventory of $288,000 for the period. 

 

1. The planned total reductions for last year were 11.6% and were distributed with  

Answer 1

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