Milligan’s Backyard Storage Kits

877 WordsJul 1, 20124 Pages
Milligan’s Backyard Storage Kits CASE BACKGROUND Milligan’s Backyard Storage Kits, a mail order company, sells a variety of backyard storage unit kits and landscaping decorations to its customers. Although the company makes a profit, David Milligan, the company’s owner, realizes that he can improve his company’s operations if he better manages his inventory. Mr. Milligan requests your help in preparing an Inventory Analysis worksheet. The Inventory Analysis worksheet provides Mr. Milligan with information about his annual sales, cost of goods sold, gross profit, and markup on this products. Preparing the worksheet for Mr. Milligan requires you to insert columns, use several functions, and apply proper formatting to the…show more content…
Mr. Milligan additionally needs answers to the following questions. Using your newly designed Inventory Analysis worksheet, provide Mr. Milligan with answers to his questions. 1. Mr. Milligan wants a markup of at least 30 percent on all items. Which items have markups less than 30 percent? 2. In terms of annual sales, which item has the lowest annual sales? 3. In terms of annual sales, what were Mr. Milligan’s biggest selling items last year? Identify the top five. 4. What are the company’s total annual sales? 5. What is the company’s annual gross profit? 6. Based on average unit sales, which five items had the lowest sales? Based on average unit sales, which five items had the highest sales? 7. Mr. Milligan would additionally want to know what a suggested Unit Sales Price should be for all inventory items where markup is below 30%. He would like you to calculate the Unit Sales Price so that the new markup is 30% -----------------------

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