Hi Ms. Alfonso,
I am in in FRM 130 and having difficulties. I have 2 more weeks of this class and I eally want to finish strong but math and word problems are not my greatest strength. i get so overwhemed I have my next assigment that I am having difficulties with. Can you please help me. It takes me a while to get thiings so taking it step by step helps me. hope to hear from you soon, thank you
Create a P&L statement for a buyer of Bailey's Menswear Big and Tall in lower Manhattan. He has achieved a planned initial markup percentage of 48.5 percent on sales of $655,500 in June. The markdowns amounted to $15,450 and expenses were fixed at $285,000. The combination of these factors has resulted in a profit of 2.7 percent for the month of June. However toward the end of the month, sales begin to drop and the buyer becomes anxious about July sales slacking off even further.
Create another P&L statement to calculate the effect on the net profit if sales slack off 8 percent and the buyer maintains the same MU% and his expenses are fixed at the June level.
Complete these two P&L statements both in dollars and percentages, and discuss the effect that the drop in sales will have on the net profit. What plan of action would you suggest to boost lagging sales before the month of July begins?
