A buyer in the mens clothing department of a major department store has forecasted sales...

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Question

Accounting

  1. 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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