The following information is known for a buyer of cosmetics:
$\begin{array} { ll }
\text {Planned sales for the month }&\$42,000\
\text {Planned EOM stock }&\$60,000\
\text {Planned reductions }&\$4,800\
\text {BOM inventory }&\$72,000\
\text { Merchandise commitments for delivery}&\$9,600\
\end{array}$

What is the cosmetic department's open-to-buy at retail?
A) $10,000
B) $25,200
C) $32,400
D) $34,800
E) $38,600

Question

The following information is known for a buyer of cosmetics:
$\begin{array} { ll } 
 \text {Planned sales for the month }&\$42,000\
 \text {Planned EOM stock }&\$60,000\
 \text {Planned reductions }&\$4,800\
 \text {BOM inventory }&\$72,000\
 \text { Merchandise commitments for delivery}&\$9,600\
\end{array}$

What is the cosmetic department's open-to-buy at retail?
A) $10,000
B) $25,200
C) $32,400
D) $34,800
E) $38,600

Quizplus · Accepted Answer

The open-to-buy (OTB) at retail is calculated as: Planned Sales + Planned EOM Stock + Planned Reductions - BOM Inventory - Merchandise Commitments. Substituting the given values: $42,000 + $60,000 + $4,800 - $72,000 - $9,600 = $25,200.

The Following Information Is Known for a Buyer of Cosmetics