Short Answers: 3 pts
1. Compare POS markdown with Permanent markdowns and discuss the main differences between the two.
2. Why is Units on hand (UOH) value used to calculate markdown amount in Permanent markdown cases but Units sold value used in the case of POS Markdowns?
3. Distinguish between the four analytical criteria used for evaluating markdowns. What is the relationship between sell through % and Weeks of Supply ratio?
Quantitative Problems: 7 pts
· Point of Sale Markdown Problems: Question: 68, 69, 70
· Permanent Markdown Problems: Question: 72, 73,
· Weeks of Supply, Sell through % and Build Problems : 74, 75, 76
Point of Sale Markdown Problems
68) The shoe buyer ran a point-of-sale promotion on ballet flats for a spring sale weekend at 30% off. Here is what was sold during the sale:
Calculate the following:
a) Total markdown $ for the sale
b) Total sales $ generated for the sale.
c) Markdown % for the sale.
69) The shoe buyer ran a POS promotion during the Thanksgiving weekend on ankle boots that has a regular retail price of $129.00. On Black Friday, these boots were promoted at $79.99 and 600 pairs sold. On Saturday and Sunday, the boots were on a POS promotion at 40% off and 500 pairs sold.
Calculate the following:
a) Total markdown $ for the POS promotion.
b) Total sales $ for the POS promotion.
c) The markdown % for the POS promotion
d) If the buyer projected to take $49,000 in markdown $, was the buyer over or under his or her projection and by how much?
70) The handbag buyer bought 960 printed handbags to retail at $60.00. At the regular retail price, only 60 handbags were sold. The buyer took a 25% off POS markdown and 150 handbags sold. The buyer took another POS markdown to $34.99 and 200 handbags sold. Calculate the following:
a) Markdown $ for this sale.
b) Sales $ generated for the sale.
c) Markdown % for this sale.
d) If you planned markdown dollars were $8,000, does the buyer have more or less markdowns to spend and by how much in dollars?
Permanent Markdown Problems
72) The dress buyer bought 150 little black dresses to retail at $90.00. at this price only 30 were sold. The buyer then took a permanent markdown to $69.99, 50 dresses were sold. The buyer then took another permanent markdown to $49.99 and 50 more were sold. Calculate the following:
a) Total markdown $ for this sale
b) Total sales $ generated.
c) Total markdown % for this sale.
73) The sunglass buyer bought $7,200 pairs of sunglasses for summer to retail for $49.00. At full price, 2,150 pieces were sold. The buyer took a permanent markdown for $29.99 and 2,975 pieces were sold. A second permanent markdown was taken to $19.99 and 1,600 were sold. Calculate the following:
a) Total permanent markdown $ for the sunglasses.
b) Total retail sales $ for the sunglasses.
d) Total markdown % for the sunglasses
Weeks of Supply, Sell through % and Build Problems
74) A buyer purchases 1,200 sandals from a vendor to retail at $89.00. In the first week, the buyer sold 30 pairs at regular price.
a) Calculate the WOS and ST % for week 1.
b) The second week, the buyer sold 40 pairs at regular price. Calculate the WOS and ST % for week 2. What was the build in unit sales for week 2 from week 1?
c) The third week, the buyer took a POS markdown to $69.99 and sold 65 pairs. Calculate the WOS and ST % for week 3.
d) What is the markdown % to the customer and what is the markdown % to the retailer (journal)?
e) Calculate the build in unit sales from week 3 to week 2.
75) You are buying 300 sweaters from two vendors to retail at $50.
a) If you sold 20 sweaters in week 1, calculate the WOS and ST % for week 1.
b) If you sold 30 sweaters in week 2 with a POS markdown retail of $40, calculate the WOS, ST %, build, and markdown % to the customer and to the journal.
c) In week 3, you sold only 25 pieces at $40. Calculate the WOS, ST %, and build.
e) In week 4, you took a POS markdown to $25 and sold 60 pieces. Calculate the WOS, ST % build, and markdown % to the customer and to the journal.
76) For spring, you purchased 640 pairs of mens fashion denim jeans that retail at $149.00.
a) In the first week, you sold only 25 pieces. Calculate the WOS and ST % for week 1.
b) In week 2, the decision was made to take a POS markdown to $99.99 and you sold 55 pieces. Calculate the WOS, ST %, build, and markdown to the customer and to the journal.
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