Question

The following information is known for a buyer of cosmetics: Planned sales for the month $42,000 Planned EOM stock $60,000 Planned reductions $4,800 BOM inventory $72,000 Merchandise commitments for delivery $9,600 What is the cosmetic department's open-to-buy at retail?

Answer 1

$25,200

Step-by-step explanation:

Given that,

Planned sales for the month = $42,000

Planned EOM stock = $60,000

Planned reductions = $4,800

BOM inventory = $72,000

Merchandise commitments for delivery = $9,600

open-to-buy at retail:

= Planned sales for the month + Planned End of Month Inventory - BOM inventory - Planned reductions

= $42,000 + $60,000 - $72,000 - $4,800

= $25,200