Markup results discussion | Economics homework help

You were hired by a group of investors to buy and merchandise accessories for their small, four-store chain of infant apparel shops, and you’re planning a buying trip to AmericasMart Atlanta (Atlanta Apparel).

This new product classification is to complement and reflect their prestigious, unique merchandise assortments, which are targeted toward upper-income mothers and grandparents looking for the unusual: Children’s World at Atlanta Apparel.

This new classification was introduced in the fall/winter period and was well received by their clientele. Although the projected sales goal was met, the profit performance was more than disappointing. After analysis of each market segment and location, your focus will be on the combined merchandise selection factors that form the basis of your ultimate selections suitable for your particular customer group. As a buyer, don’t forget that you often review buyer’s briefings from various forecasting resources such as the Worth Global Style Network(WGSN).

The pricing factor is one of the elements that is of major importance, as it is both significant and observable. Because of the relationship of pricing to gross margin, management has planned and set certain gross margin guidelines and limitations to ensure that the store achieves a more satisfactory gross margin. These figures are to be achieved while accomplishing the projected sales. As an incentive, you have been promised an additional bonus if you provide gross margin results that are an improvement over the following expected guidelines:

Gross margin    49.4%           (42.4% expenses, 4% profit)

Sales:                     $600,000

Markdowns:      $660,000             (10%)
Shortages:          $612,000             (2%

Opening Inventory: $150,000

Closing Inventory: $200,000

You are confident that with appropriate planning and forecasting you will be able to attain the results management wants, and the phantom bonus mentioned could become a reality for you.

Analyze the above problem. As you have learned, a key factor in gross margin control is the pricing of merchandise. In your initial post, answer the following:

  • Since management already established a 47.4% gross margin, will advance planning of an initial markup help ensure a favorable gross margin? Yes or no? Why?
  • Having calculated the initial markup, should you be able to determine the gross margin or maintained markup? What is to be gained by determining these two figures?
  • Consider the decision-making process surrounding markups. Although you will focus on obtaining the desired markup percentage, you will also have to pay attention to the dollar markup. Why?
  • Because the sales, markdowns, and shortages are projections, they could prove to be erroneous. Compute and compare how the dollar markup could give different results if the actual reductions increased to 13%. Should you aim for a higher initial markup to build a “cushion” to account for the unpredictable?
Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees


We value our customers, and so ensure that our papers are 100 percent original. Our Team of professionals does not miss the mark; they ensure that step by step each paper is written uniquely. We never duplicate or work as we compare papers rest assured. We deliver our work a day before time to ensure that you don’t miss your deadlines. It is not only doing the work but delivering it at the right time. We capture the consequences of late remittances. .

Money-back guarantee

We value customer satisfaction here at popularessaywriters.com and make sure that you get the best value for your Money. It happens that sometimes you can pay twice for your order or may want to cancel it, or you feel that it doesn’t meet your requirements; our money back guarantee will give you the opportunity to get back your money. We will also refund 100% of money paid double. In case your paper does not satisfy your requirements , we request that you notify us via writing within 2 days otherwise on the third day we will assume that you have been satisfied. Do all your correspondences through our email address popularessaywriters@gmail.com.

Read more

Zero-plagiarism guarantee

At popularessaywriters.com, our professional writers know the consequence plagiarism does for our clients. We have updated software’s such as article checker and copyscape to check for originality of the custom papers before submission of the final paper to the you. Our guarantee to the customer is that we will write 100% original papers for them that are quality, timely and of low cost. We have experienced professional and competent PhD writers who will write quality custom papers for you..

Read more

Free-revision policy

. At popularessaywriters.com, we are proud to provide top-quality Essay writing service to our esteemed customers. We are ready to take up that challenging academic assignment that is giving you sleepless nights and simplify it for you according to your desired requirements. We are willing to revise your paper if it does not meet your requirements. At popularessaywriters.com, we do not compromise with quality; thus, we offer unlimited free revisions until the customer is satisfied with their custom paper. Our unlimited free revision services are provided under the following terms:.. .

Read more

Privacy policy

Popularessawriters.com knows that client’s information is an essential tool for our company. It means that whatever the client requests from our service is kept strictly confidential. It means that whoever writes for this company understands the terms and conditions hence you should not be worried because you will never see your work somewhere else...

Read more

Fair-cooperation guarantee

Rest assured that we will always be attentive to your needs and requirements. We belief in the phrase treat your neighbour as you would want them to treat you. We leave nothing to chance and always look forward to a good interaction with each other.. .

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency