A buyer in the mens clothing department of a major department store has forecasted sales...
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Accounting
A buyer in the mens clothing department of a major department store has forecasted sales of two-piece suits at $270,000 for the coming fall-winter season. The department carries two price lines of mens two-piece suits at $225 and $275. The former line accounts for 70% of the season sales; the latter accounts for the remaining 30%. Both price lines of suits come in three basic styles
Two-button suits account for 25% of the sales in both price lines
Three-button suits account for 50% of the volume in the $225 price line and 60% in the $275 price line
Double-breasted suits account for 25% in the $225 price line and 15% in the $275 line.
Two-piece suits = $225 price line
Size
Distribution
#25 plains
#37 Stripes
#07 Checks
36
10%
33%
33%
33%
38
15%
40%
30%
30%
40
25%
30%
45%
25%
42
30%
35%
50%
15%
44
20%
30%
40%
30%
$225
Size
Quantity for
Model Stock
Patterns
%
#
%
#
%
#
%
#
Double breasted
36
38
40
42
44
Total
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