Part B: Retail Math Problems (10 points each).
1. A buyer is going to market and needs to compute the open-to-buy. The relevant data are as follows: planned stock at end of March, $400,000 (at retail prices); planned March sales, $165,000; current stock on hand (March 1), $270,000; merchandise on order for delivery, $15,000; planned reductions, $10,000. What is the buyer’s open-to-buy?
. 2. A retailer purchases goods that have a list price of $15,000. The manufacturer allows a trade discount of 40-25-10 and a cash discount of 2/10, net 30. If the retailer takes both discounts, how much is paid to the vendor?
3. a. If the markup on cost is 75 percent, what is the markup on selling price?
b. If the markup on selling price is 55 percent, what is the markup on cost?
4. A buyer submits the following plans to his general merchandise manager: planned sales = $140,000; planned initial markup = 40 percent; planned reductions = $30,000. Based on these projections, what is the planned maintained markup percentage?
5. A buyer tells you that she realized a markup of $60 on a desk top lamp. You know that her markup is 25 percent of retail. What did the lamp cost her?
6. A retailer purchases appliances for $50 and desires a 40 percent markup on the selling price. What should the retail price be?
7. A retail shop manager requires a minimum markup of 45% on the selling price on leather belts. And the manager feels that a line of leather belts should retail for $25 each, what is the maximum price the manager would be willing to pay per belt?
8. A small appliance retailer estimates May sales to be $300,000 and plan reductions to be 20% of sales and ending of the month inventory to be $65,000. Beginning of the month inventory is $85,000. Compute planned purchases for May.
9. A health food retailer has $100,000 in monthly operating expenses and planned monthly sales of $400,000. Reductions are planned to be $8,000. A profit goal of $40,000 is established. What is the required initial markup percentage?