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3. Using the following six-month merchandising plan, fill in last year's
figures and then analyze the given information:
Monthly sales percent each month
Monthly stock-to-sales ratio
Monthly markdown percent
Monthly planned purchases at retail and cost
Average stock
Stock turnover
Total markdown percent
Last year's fall season figures were as follows:
Sales Volume
BOM Stocks
Markdowns
August
$135,000
$405,000
$ 1,050
September
$117,000
$304,200
$ 7,020
October
$108,000
$324,000
$13,450
November
$180,000
$558,000
$14,450
December
$270,000
$513,000
$38,765
January
$ 90,000
$360,000
$29,372
February
$325,000
Average departmental markup was 51%.
4. Analysis and Interpretation The department in Problem 3 is a
men's sweater department in a large moderate- to better-priced de-
partment store. The location is in the midwestern United States. In
your opinion and based on the current styles and trends for
menswear, do you feel that this department is running a successful
operation? Explain. Discuss the sales flow, the balance of stock, and
the markdowns taken monthly and overall; also analyze the aver-
age stock along with the turnover rate.
