Question

CHAPTER 1 2. Using the following classification plan, prepare an assortment for wallets, which are classification #12 of the women's hand department. Use the following information and research to you in the development of your plan. BOM stock of women's handbags for the opening of the falls son is $250,000. Past sales indicate that wallets account for 25% of the sales, and the stock has been on hand to support those sales. Key price points are: Lower: $15.00 per package, contributing 25% of the stock Middle: $20.00, contributing 40% of the stock Upper: $35.00, contributing 35% of the stock Further research shows that 85% of the stock on hand is leather and the other stock is miscellaneous fabrics. Since wallets do not have sizes such as small, medium, and laree what are some of the key characteristics you might want to consider when developing a model stock for this classification? Classification Planning Chart (Name and identifying number) Classification Season or month Total BOM stock Classification % to total stock Total planned dollars Price Line 46 Value Total Retail S Total Units Lower Middle Upper Inventory Breakdown Lower Leather - pcs. Fabric Middle Leather pcs. Fabric Upper Leather - pcs. Fabric

Answer 1

Total sales for hand bags			2,50,000	$
Revenue expected from sale of wallets			(250000*25%)		62,500	$
Product types			Lower		Middle		Upper
Price range		(a)	15	$	20	$	35	$
Expected sales in %			25%		40%		35%
Expected sales in $
(62500*25%)		(b)	15,625	$
(62500*40%)		(b)			25,000	$
(62500*35%)							21,875	$
Total units in pieces		( c) = (b)/(a)	1,041.67	pcs	1,250.00	pcs	625.00	pcs
Inventory Breakdown
Leather	85%	( c*85%)	885.42	pcs	1,062.50	pcs	531.25	pcs
Fabric	15%	( c*15%)	156.25	pcs	187.50	pcs	93.75	pcs
Total units			1,041.67	pcs	1,250.00	pcs	625.00	pcs