# Project #57296 - Retail/Business Math

On October 1, 2005, Annie had an opening inventory at retail valued at \$195,000.00 with a MU% at 61.4 percent and by the middle of November, the purchases for the season to date to carry Annie's through the busy holiday amounted to \$375,000.00 at cost. Annie estimates that she has to achieve a 65 percent cumulative markup in order to meet her year-end profit projection.

This week, perform the following activities.

1. What will the total dollar value of Annie's merchandise at retail be?

2. What is the MU% that must be applied to the purchases season to date to achieve the planned cumulative MU% of 65 percent? What course of action would be appropriate to increase MU%?

During this fall quarter, Annie hires two more part-time sales associates for 20 hours per week at an hourly rate of \$8.00 to assist the increased business for the Christmas rush. She hires another part-time security guard for the quarter at an additional security cost of \$2,500.00.

At the close of business on December 31, 2005, the following numbers apply.

• Net sales for the fall quarter totaled \$905,375.00 with a gross margin of \$443,440.00.

• Annie increases her advertising expense by \$12,000 above her summer advertising expense to generate greater market visibility and continues promotional events started in summer with another fashion show and another fashion makeover.

• Except as noted, all operating expenses remain same as that at the end of summer. (Remember to use 52 weeks for a year).

Â

With the given information, create a skeletal P&L statement for the fall quarter.

P&L statement, Operating Expenses, Helpful hints, and exampel of a table to answer question 1 and 2 will be uploaded below

 Subject Mathematics Due By (Pacific Time) 02/15/2015 12:00 am
TutorRating
pallavi

Chat Now!

out of 1971 reviews
amosmm

Chat Now!

out of 766 reviews
PhyzKyd

Chat Now!

out of 1164 reviews
rajdeep77

Chat Now!

out of 721 reviews
sctys

Chat Now!

out of 1600 reviews

Chat Now!

out of 770 reviews
topnotcher

Chat Now!

out of 766 reviews
XXXIAO

Chat Now!

out of 680 reviews