The buyer of women's gloves currently has an average inventory of $20500, with an annual turnover rate of 4.0. Because this rate of stock turn is below the industry average, a 7.82% increase in turnover is sought. Assuming a constant level of inventory, calculate the percentage increase in sales necessary to produce a 7.82% increase in turnover.
(helptful hint: First calculate the new turnover rate, then figure both last year's sales and this year's sales. From there calculate the sales increase %.) still not sure how to do this!
Customer returns for womans dresses totaled 8,700.Gross sales were 117,000. What % of merchandise sold was returned?What were the net sales?
Customer returns for womans dresses totaled 8,700.Gross sales were 117,000. What % of merchandise sold was returned?What were the net sales?
Customer returns for womans dresses totaled 8,700.Gross sales were 117,000. What % of merchandise sold was returned?What were the net sales?
To calculate the percentage increase in sales necessary to produce a 7.82% increase in turnover, we'll follow these steps:
Step 1: Calculate the new turnover rate:
The current turnover rate is 4.0, and we want to increase it by 7.82%. To find the new turnover rate, we add the increase to the current rate:
New turnover rate = Current turnover rate + (Current turnover rate x Increase)
New turnover rate = 4.0 + (4.0 x 0.0782)
Step 2: Calculate last year's sales:
Since the turnover rate is calculated by dividing sales by inventory, we can rearrange the formula to find the previous year's sales:
Sales = Turnover rate x Inventory
Last year's sales = Current turnover rate x Current average inventory
Last year's sales = 4.0 x $20,500
Step 3: Calculate this year's sales:
Using the new turnover rate, we can calculate this year's sales with the same formula:
This year's sales = New turnover rate x Current average inventory
Step 4: Calculate the percentage increase in sales:
The percentage increase in sales can be found by dividing the difference between this year's sales and last year's sales by last year's sales, and then multiplying by 100:
Percentage increase in sales = ((This year's sales - Last year's sales) / Last year's sales) x 100
Now, you can substitute the values into the formulas and calculate the percentage increase in sales necessary to produce a 7.82% increase in turnover.