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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?

Respuesta :

Answer:

$25,200

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

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