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Assignment 2: Final Project: Annie's on Broadway: Fall Quarter On October 1, 2005, Annie had an opening inventory at retail valued at $195,000.00 with a MU% at 61.4 percent and by the middle of November, the purchases for the season to date to carry Annie's through the busy holiday amounted to $375,000.00 at cost. Annie estimates that she has to achieve a 65 percent cumulative markup in order to meet her year-end profit projection. Task This week, perform the following activities. 1. What will t
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  Assignment 2: Final Project: Annie's on Broadway: Fall Quarter   On October 1, 2005, Annie had an opening inventory at retail valued at $195,000.00 with a MU% at 61.4 percent and by the middle of November, the purchases for the season to date to carry Annie's through the busy holiday amounted to $375,000.00 at cost. Annie estimates that she has to achieve a 65 percent cumulative markup in order to meet her year-end profit  projection. Task   This week, perform the following activities.   1. What will the total dollar value of Annie's merchandise at retail be? 2. What is the MU% that must be applied to the purchases season to date to achieve the planned cumulative MU% of 65 percent? What course of action would be appropriate to increase MU%? During this fall quarter, Annie hires two more part-time sales associates for 20 hours per week at an hourly rate of $8.00 to assist the increased business for the Christmas rush. She hires another part-time security guard for the quarter at an additional security cost of $2,500.00.  At the close of business on December 31, 2005, the following numbers apply.   Net sales for the fall quarter totaled $905,375.00 with a gross margin of $443,440.00.   Annie increases her advertising expense by $12,000 above her summer advertising expense to generate greater market visibility and continues promotional events started in summer with another fashion show and another fashion makeover.   Except as noted, all operating expenses remain same as that at the end of summer. (Remember to use 52 weeks for a year). With the given information, create a skeletal P&L statement for the fall quarter. Deliverable  Use the given template to document your responses. Submit it to the W5: Assignment 2 Dropbox  by Monday, September 23, 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  50 Points 42.5 40 32.5 30 0  –  25 Points Excellent   Good   Moderate   Needs Improvement   Below Standard   Unacceptable  45 Points 36 36 28.5 27 0  –  22.5 Points Excellent   Good   Moderate   Needs Below Unacceptable    Improvement   Standard  5 Points 4.5 4 3.5 3 0  –  2 Points Assignment 2 Grading Criteria   Maximum Points   Content  Correctly calculated the total dollar value of Annie's merchandise at retail. 50  Correctly calculated MU% that must be applied to the  purchases season to date. 50 Correctly completed a skeletal P&L statement for the fall quarter. 50 Describe other course of action that would be appropriate to increase MU%. 45   Format  Used the given template to document responses and submitted it to the W5: Assignment 2 Dropbox  by Monday, September 23, 2013 . Used the provided Word or Excel template. 5 Total:   200   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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