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Assignment 2: Final Project: Annie's on Broadway: Summer Quarter The impact of June promotion on sales has inspired Annie to reduce her advertising expense by planning better promotions for the pre-fall quarter. She plans to mark down all goods sold during Labor Day week by 15 percent. In addition, she partners with a local college, which has a Fashion Design program, and sponsors a fashion show. This goodwill event has created quite a stir in the community. Annie plans to award one free Fash
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  Assignment 2: Final Project: Annie's on Broadway: Summer Quarter The impact of June promotion on sales has inspired Annie to reduce her advertising expense by  planning better promotions for the pre-fall quarter. She plans to mark down all goods sold during Labor Day week by 15 percent. In addition, she partners with a local college, which has a Fashion Design program, and sponsors a fashion show. This goodwill event has created quite a stir in the community. Annie plans to award one free Fashion Makeover valued at $2,500.00 to a local Breast Cancer Support Group for a woman whom the support group selects as being most in need of the free makeover. During late July, the fashion show costs her $1,600.00, and the makeover is awarded in the second week of August. Annie finds a new vendor (Vendor Z) who deals in the same clothing and accessory lines as her prior vendor (Vendor A). Vendor Z and Annie make a deal to increase the cash discount for early payment of the invoice to 3 percent and to ship directly from the factory. Therefore, all items from Vendor Z arrive with prepaid freight, and she manages to decrease her COGS by 2 percent for a total of 35 percent COGS for summer on net sales (NS) of $162,075.00. Annie has also laid-off her full-time employee and reduced the sales meeting refreshments by 50 percent. Advertising expense for the quarter is reduced by 15  percent because of establishment of the promotions. All other expenses remain the same. Task   This week, perform the following activities. 1.   If Annie has actual markdowns of 12.25 percent storewide for Labor Day week and the  NS for that week is 20 percent of the NS for the entire quarter, calculate the markdown dollars for that week. 2.   Create a skeletal P&L statement for the summer quarter ending September 30, 2005. 3.   Did Annie's on Broadway meet their NS projection for summer quarter? Compare the earned NS% with the planned NS%  —  is it greater or lesser, and by what percentage? 4.   Did Annie's pricing strategy work for the summer quarter? Justify your response on the  basis of data shown on the skeletal P&L statement. 5.   How has Annie's on Broadway utilized pricing strategy combined with promotions to establish a more profit-oriented business and an enhanced community image? Explain. 6.   Did Annie's business meet its planned reduction in OE%? Explain. Compare the actual vs. projected OE$ performance of summer quarter   —  is it greater or lesser, and by how much? Deliverable Use the given template to document your responses and submit it to the W4: Assignment 2 Dropbox  by Monday, September 16, 2013 . You can use the Word or Excel template depending on your comfort  —  you'll be graded on the calculations and not on the choice of template.  Grading Scale for Assignment Criteria:   Excellent   Good   Moderate   Needs Improvement   Below Standard   Unacceptable  5 Points 4.5 4 3.5 3 0  –  2 Points Excellent   Good   Moderate   Needs Improvement   Below Standard   Unacceptable  10 Points 8.5 8 6.5 6 0  –  4 Points Excellent   Good   Moderate   Needs Improvement   Below Standard   Unacceptable  15 Points 12.5 12 9.5 9 0  –  6 Points Excellent   Good   Moderate   Needs Improvement   Below Standard   Unacceptable  20 Points 16.5 16 12.5 12 0  –  8 Points Assignment 2 Grading Criteria   Maximum Points   Content  Correctly calculated the markdown dollars for the Labor Day week. 20  Correctly completed skeletal P&L statement for summer quarter. 20 Identified whether Annie's on Broadway met its NS  projection for summer quarter. 15 Correctly calculated the earned and planned NS% variance. 15 Identified if Annie's pricing strategy worked for the summer quarter and justified the response. 15 Explained how Annie's on Broadway utilized pricing strategy combined with promotions. 15 Explained if Annie's business met its planned reduction in OE%. 10 Correctly calculated the actual vs. projected OE$  performance of summer quarter. 10 Format  Used the given template to document responses and submitted it to the W4: Assignment 2 Dropbox  by Monday, September 16, 2013 . Used the provided Word or Excel template. 5 Total:   125    For assistance with any problems you may have when completing this assignment — OR — to offer your assistance to classmates, please use the Problems and Solutions Discussion area located through the left side navigation link.
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