Posted: December 8th, 2015
Final Exam Assignment: (Total pts.: 50)
Due Date: Wednesday BY 8.00pm
Submit: Submit Excel file and PDF file on BB.
Question1(15 points)
In preparation for a buying trip, a buyer determined a 54% markup was required on all purchases which amounted to $750,000 at retail. Upon completion of the trip, the buyer reviewed the orders placed. At the end of the season, a vendor analysis revealed the sales results shown below:
Cost Initial retail Final retail
Resource A $ 25,000 $ 50,000 $ 50,000
Resource B 40,000 85,000 83,000
Resource C 60,000 135,000 130,000
Resource D 55,000 135,000 135,000
Resource E 75,000 170,000 167,000
Resource F 90,000 175,000 165,000
Total $345,000 $750,000 $730,000
Compute the following: (Excel table: 10 pts)
(a.) Initial markup percentage for each resource.
(b.) Final markup percentage achieved for each resource.
(c.) Compare the anticipated markup percentage of the entire purchase with the actual markup percentage achieved.(2 pts)
(d.) Which vendor(s) markup percentage performance was superior to the overall markuppercentage and by how much?(3 pts)
The format should look like:
Question 2(15 points)
Ms. Kane, the China and Glass buyer of Crystal Clear, Inc., was asked to present a yearly profit and loss in skeletal form to the divisional merchandise manager. In addition, she wanted to prepare a summary of comments that included a comparison of her performance this year with that of her major competitor, China Seas, Ltd. Ms. Kane obtained the following information from
Crystal Clear’s statistical department:
Gross sales $135,000
Alteration and workroom costs $ 1,000
Opening inventory, at cost $ 49,500
Closing inventory, at cost $ 61,000
New purchases, at cost $ 77,500
Inward freight $ 1,500
Cash discounts 4% (of new purchases)
General overhead $ 11,000
Advertising $ 9,000
Salaries $ 20,000
Rent $ 8,600
Customer returns and allowances $ 15,000
Ms. Kane obtained, from outside research, profit and loss data on her competitor, China Seas, which had the following results for the same year:
Profit = 6% or $7,350 | Operating expenses = 40%
Ms. Kane then prepared a skeletal profit and loss statement for her department and for that of her competitor China Seas. Upon completion of this task, she compared the two statements. Support the suggested action mathematically.
(Note: Use concepts from RMI to calculate Total Cost of Goods Sold. Calculate operating profit based on the direct/indirect expenses mentioned above. Use the format given below)(10 pts)
Support your response mathematically.(5 pts)
Question 3((20 points)
Recreate the table given below in Excel. Add columns to the table below to complete needed information.
Note: X-axis (selling cost%) and Y axis (wages per hr), Show employees on X-Axis.
Place an order in 3 easy steps. Takes less than 5 mins.