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  3. 12 two years later the vandal lounge is thriving the...

Question: 12 two years later the vandal lounge is thriving the...

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12.       Two years later, The Vandal Lounge is thriving. The manager has decided to add mixed drinks, T-shirts, and Vandal Burgers to the assortment. For the year, it is estimated that purchases will be as follows:

Item                                                                                                                            Total Retail                Total Cost                IMU

Beer                                                                                         $200,000.                        $80,000.

Mixed Drinks                                                              100,000.                          60,000

T-shirts                                                                            30,000                             9,000

Vandal Burgers                                                    60,000                           45,000

What is the IMU for each line?

What is the estimated, total cumulative MU for the bar?

Suppose you want to raise the cummulative MU but you don’t think you can raise prices, and you are already getting the best prices possible from your vendors. Is there any way you can still raise your cumulative MU?

13.       The Nuclear Sub shop (slogan; “Our subs won’t torpedo you budget”) has an opening inventory of $133,000. The MU on this inventory is 45.6%. Purchases are planned for $466,000 at retail. You feel you must end the year with at least a cummulative MU of 44.3%. What is the most you can pay, at cost, for your purchases?

14.       A retailer has a closing retail inventory of $89,333 at retail. The beginning inventory had a retail value of $95,567 and a cost valuation of $40,432. Purchases for the year totaled $457,890 with a cost of $222,546. What is the estimated closing value of the inventory at cost?

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