The seasonal plan for a shoe department shows planned sales of $753,000 with planned markdowns of 56

Business Jun 23, 2021

The seasonal plan for a shoe department shows planned sales of $753,000 with planned markdowns of 56.4%

A.) what is the total planned dollar amount of markdowns?

B) if the actual markdowns are $450,000 on actual sales of $800,000 are the actual markdowns taken more or less than planned? By how much? What is the actual markdown percentage?

Expert Solution

a) Computation of Total Planned Dollar Amount of Markdowns:

Total Planned Dollar Amount of Markdowns = $753,000*56.4% = $424,692

b) Actual markdowns Percentage = $450,000/$800,000*100 = 56.25%

The actual markdowns are less than planned markdowns = 56.4% - 56.25% = 0.15%

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