Torn Boutique

Carissa Greenlee
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Table of Contents

Mission Statement…………………………………………………………………3

Description of Business…………………………………………………………...3

Overview of Product………………………………………………………………3

Key Elements of Service…………………………………………………………..5

Product Assortment Plan…………………………………………………………6

Price Points………………………………………………………………………...6

Location Details…………………………………………………………………...8

Current Marketing Plan………………………………………………………...10

New Marketing Plan……………………………………………………………..16

Financial Information…………………………………………………………...23
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Mission Statement

“Torn aims to deliver trendy clothing at affordable prices, while creating a unique
shopping environment for its customers.”

Description of Business

Suggestions for the business:

 Carissa should restock more of her basic items such as tops, jeans, dresses,
and rompers.
 Right now her trendiest product would be the teeth whitening toothpaste she
sells. She should focus on making her trendy product jeans or a top. This
might help having a clothing item as the trendiest product rather than a cross
merchandise product.
 We think she should get rid of the text club and just focus on sending all of
her customers or anyone who is signed up for her emails. That way anytime
an event, promotion, or big sale is going on she can email everyone and let
them know.
 We think she should make her fixtures more cohesive. She has plenty of
fixtures, but the problem is they don’t flow that well together. She needs to
make all the product going together a certain theme/color.
 We think accessories should be brought into the fitting room because it
allows a customer to possibly complete an outfit if they see suggestions
sitting in the fitting room.

Overview of Product

 At Torn, they are a very trendy boutique that has a lot of cute basic items for
your needs, but also carries on trend products as well. Even though it is
trendy it is still affordable to purchase. With her costs she is still providing
quality garments and accessories. She carries alongside her product a variety
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of accessories. She carries bohemian purses, toothpaste, and accessories for

your car keys.

Product Categories:

 Women’s Clothing
o Sweaters
o Outerwear
o Jeans
o Blouses
o Tops
o Bralettes
o Shorts
o Overalls/Rompers

 Shoes
o Boots
o Mules
o Heels
o Booties

 Giftables
o Lotion
o Candles
o Toothpaste

 Purses
o Clutch
o Wallet
o Handbags

 Accessories
o Sunglasses
o Jewelry
o Belts
o Hats
o Hair Accessories
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Key Elements of Service

Customer Service:
Torn strives to provide the best customer service at her local boutique. Since her
business is based out of a home she wants her customers to have a very at home
feeling when they are shopping. Carissa wants her customers to feel very
welcomed to try to have the best shopping experience. She provides online
ordering for all of her customers and for the customers that are out of state that
cannot personally shop at her boutique. Carissa loves giving back to her customers
by providing them sales and special events. She attends sporting events to support
her customers and to show she cares about them too.

Customer Incentives:
As a customer at Torn you are provided with an E-club for all customers. Carissa
likes to welcome new customers to her E-club as well so they can be informed with
any new promotions or sales going on at that time. She loves to provide different
promotions for her customers. For example, she gave a discount for all the students
headed back to school. She also provides a 10 for 10 Instagram deal. The biggest
thing she does for her customers is bringing the truck out to the location to benefit
the customers. It provides them easier access and a shorter drive to shop her
boutique. She even does pop up shops at people’s houses.

Add Ons:
Not only does she sell clothing and shoes but she also smaller items as well. She
provides a variety of product to her customers to make her boutique more versatile.
Her biggest selling product in the store right now is one of her add ons, which is
the charcoal toothpaste. She makes sure all her outfits in the store would have a
complete look by selling handbags, jewelry, and hair accessories.

Forms of payment accepted:

In store and Online:
All forms of credit/debit cards and Gift Cards. Checks are not an accepted type of
payment.
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Product Assortment Plan

Shipment and Deliveries:

For customers ordering online she offers free shipping for orders over $50.00 or
more. She takes all of her product to be shipped at USPS and she does that every
week.

Trends:
Torn boutique loves to stay on trend for all of their clothing and accessories. She
goes to all of the famous markets including; Dallas, Vegas, and online orders from
Chicago. She loves to keep it exciting and fresh so she always likes to test out new
vendors and product. Torn provides a lot of trendy items.

Seasonal Changes:
In her store she has a floor set every season to change the store layout around and
make changes to her store so it is not always constant.

Price Points

Tops:
 $16.00
 $27.00
 $47.00
 $60.00

Bottoms:
 $24.00
 $36.00
 $44.00
 $88.00

Dresses:
 $39.00
 $47.00
 $67.00
 $75.00
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Jackets:
 $55.00
 $60.00
 $63.00
 $65.00

Accessories:
 $18.00
 $36.00
 $46.00
 $59.00

Vendors

 Dear John
 Peach Love
 KanCan
 Blank Paige
 Z-Supply
 Wander lux
 Hyfve
 Bibi
 Love Tree
 Miley and Molly
 Hobo
 Beljoy

Torn has 12+ vendors merchandised within the boutique. Out of the vendors listed
above, Torn’s bestsellers are Dear John, Wander lux and Beljoy. These vendors
range from denim, women’s clothing and jewelry.
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Location Details

Torn is located at 206 E. Brick St. which

runs next to but off of Ozark’s downtown
square. The store is located inside a single
family house that is 1,090 sq. ft. built in
1940, that is renovated to now house Torn
Boutique.

Benefits: Her house itself has a lot of

personality and charm to it, we think it gives
her brand uniqueness and identity.

Challenges: The location and area of which her house is located not ideal for her
business and is located off the square makes it hard for new customers to find her.
She is located across from a police station, she neighbors an empty daycare and
print shop, both don't bring traffic to her specific street.

The Exterior of the Store Location

Accessibility
A single front door entrance with steps or a ramp with handicap accessibility
directly to the right.

Parking
Street Parking only.

Safety of Customers
There appears to be no safety concerns involving
customers, except the street parking could be
dangerous for people getting in and out of their
cars.
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Area Businesses

 Weezies Upscale Resale Boutique (+)

 Parlor 4 Hair Design (+)
 Mama’s Style Kitchen (+)
 Hazel’s Flowers (+)
 Market House Cafe and Bake Shop (+)
 The Hive (+)
 Stacey’s Sweets (+)
 Juvenile Office (-)
 Spring Creek Tea Room (+)

Location Statistics

Demographic
Demographic data pulled from www.city-data.com for 65721 area code of Ozark.

 Population: 18,871 (city-data.com)

 8,775 Males
 10,096 Females
 Household Type:
 52.4% Married
 47.6% Non-family
 Median Household Income: $48,014
(city-data.com)
 Ethnic Profile
 92.2% White
 4.1% Hispanic
 2.5 % Asian/Other
 1.2% Black

Crime
According to city-data.com, during the year of 2017 there was at least 15/100,000
robberies, 173/100,000 of assaults and auto theft, and 340/100,000 of burglaries
within the 65721 zip code of Ozark.
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Current Marketing Plan

Target Customer Profile

Demographics/Psychographics

Torn Boutique look forward to targeting women from ages 18 - 40. Although, the
major goal is to really target women of ages 30 - 55-year old’s. It's a challenge to
target the women that want to look trendy with their fast forward apparel that's
provided. Due to the trendy items Torn is part with focusing on high schoolers and
young adult women but want mothers to come in. Women annual income of
$30,000-$50,000 per year.

 Gender: Female
 Geographic Location: Ozark, Missouri
 Status: Single, married, married with children, or married with kids no
longer living at home
 Lifestyle: Busy on-the-go, spending time at family outings or events, trying
new things, enjoys traveling with family on short vacations trips
 Personal interests: Shopping,
vacationing, traveling, attending
children activities, spending quality
time with family and friends that also
has kids, social events, local concerts
and festivals
 Occupation: Sales, marketing,
manager, finance, teacher
 Education: Bachelor’s Degree or
higher
 Likes: traveling, working out,
shopping, dining out, going to social
and family events, attending children
school field trips, and weekend
children outings
 Behavior: Mature, responsible of
family, goal-oriented, enjoys life and
having fun experiences with other moms or women
 Buying Influences: Good quality, price, stylish with trendy items
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Our team has identified the current Torn target customer as career-driven mother,
active person from the Ozark area. Who desire well quality, trendy pieces clothing
and accessories. These individuals are stylish, preppy, and well known fashion
things that can draw attention to unique items. They are a moderate to high class
consciousness, and want to have on trend clothes that pulls simply pieces together
with a fashionable accessory to complete the look.

Competition

Direct Competition

Direct competitors are businesses selling merchandise/products or services that are

primarily the same. Miji Boutique is a direct competitor. This business is located in
Ozark and offers similar structure in serving their customers. They offer a great
markdown with their clearance items being $5-$10 and small miscellaneous pieces
at a low cost. They offer crochet beaded bracelets that are handmade by women in
Nepal with fun colors to create a pattern. This business stocks a little of everything
from fashionable clothes, hair accessories, jewelry, decorations, and nail polish of
styles picked by current trends within the season. Our team views this business as
Torn’s only direct competitor in the Ozark area. Shaila’s boutique is another direct
competitor in the Nixa Area of Missouri and in Ozark. This store offers more than
what's trending now than can meet everyone expectations. Their store sells a
variety of apparel and accessories for children and women from sizes newborn to
3X, and it’s all priced at $50 or less. You’ll find everything from casual tees,
dresses and kimonos to slightly dressier pieces that would be appropriate for a
special party or an evening out. Some items are $50, but many of the dresses and
tees are priced $20 to $30. Torn is trendy with their affordable women clothes that
are considered fast fashion, which leaves only a few direct competitors for their
business. They are a “boutique” type of business with a unique shopping
environment for its customers and great fashion statement pieces.

Indirect Competition

Indirect competition for Torn Boutique would be some of the trendy clothing
stores around the Ozark area that could target some of the same customers but
offer unique merchandise and better saving deals to bring more traffic. Most of
these store include Brown Eyed Girls, Little Bluebird Vintage Boutique, Boutique,
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HuckaBella Boutique & Marketplace, Miji Boutique, LUK Boutique, Shaila’s, Hip
Chick Boutique, and Red Poppy Boutique. For example, Little Bluebird Vintage
Boutique have clothing boutiques, handmade artisans, trendy home decor,
repurposed vintage goods, home furnishings, and gifts helps their customers
decorate their home with wonderful house warming gifts to give someone. This
business houses over 60 small businesses that is voted BEST home decor store,
and best place to buy gifts by their customers. The bigger stores of Ozark do not
have trendy clothing/ accessories to wear, a reward program, discount days to save
their customers some money or consult your entire shopping experience.

Torn Boutique Website

The Torn Boutique website is fast forward

and represent brand personality that is self-
explanatory but easy to find. The Torn
team is strict and structured with
guidelines but also willing to work with
consumer within service. The atmosphere
of the store is non-intimidating with a
unique taste that will keep a customer
within the traditional target market, but a
outside customer that may feel intimidated
with loose its value. Torn needs to pull the
true brand image/personality into the eye
of consumers, those who are not
customers just yet. The strong tool to
communicate this voice is through the
social media platform. As explained by
Carissa, she understands it costs for
advertisements through the social media
sites that's given, but wouldn't pay for
least activity media. The setup of the
website is a great tool to find out who
Torn actually is.
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Website Home Page

The website is easily navigated through several categories on the top taskbar. At
the top Torn offers free shipping for orders over $50. The home page shows the
consumer where to shop now with a couple scrolls down how to find more
information from different social medias (Snapchat, Instagram, Facebook) or easier
way to shop and to see current new arrivals or sale items. Along, with Torn store
hours which will direct the consumer to the contact page for questions or
comments you can reach the store by phone number or email. Then, going too far
bottom of the page, there is a few models showing off eye catching pieces to wear.
One click on the picture the consumer is interested in, Torn site will navigate you
into more information about the item to purchase or to see all angles or sides of the
merchandise. Finally, there are links to Carissa’s media outlets, contact
information, shipping/return/privacy policy, terms and conditions, sizing chart, and
easy way to subscribe.

Marketing Calendar

Merchandise is ordered based on 3-6-week delivery, promotional items based on 8-

week delivery.
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Current Marketing Calendar (Facebook)

MAR5 Fashion Show and Wine Event by Torn Boutique at The The Vineyard
Vineyard Market
Tue 6 PM · 559 guests Ozark

DEC5 Shop, Sip, & Smooth Open House! Allure Medical Spa
Wed 6PM · 498 guests Springfield

DEC4 2nd Annual Holiday Sip & Shop Torn Boutique

Tue 4 PM · 80 guests Ozark

NOV 27 Fashion Truck Tour Benefitting Care To Learn Ozark, Missouri

Tue 7:30 AM · 36 guests Ozark

NOV 23 Black Friday and Small Business Saturday Torn Boutique

Fri 7AM · 77 guests Ozark

NOV2 Downtown Ozark Holiday Open House Downtown Ozark

Nov 2, 2018 - Nov 3, 2018 · 2,064 guests Ozark

AUG 21 Fashion Show and Wine Event The Vineyard Market

Tue 6 PM CDT · 449 guests Ozark

JUN4 Facebook LIVE sale Torn Boutique

Mon 8 PM CDT · 69 guests Ozark

DEC4 Holiday Sip & Shop 2017 Torn Boutique

Mon 5 PM · 84 guests Ozark

NOV 24 Biggest Shopping Weekend of the YEAR Torn Boutique

Nov 24, 2017 - Nov 25, 2017 · 49 guests Ozark
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NOV7 Let’s raise some $$ for Project Graduation Torn Boutique

Tue 10:30 AM · 92 guests Ozark

AUG 19 TORN is turning 5!!! Torn Boutique

Sat 10 AM CDT · 161 guests Ozark

FEB9 Galantine’s GIRLS NIGHT Torn Boutique

Thu 5:30 PM · 35 guests Ozark

NOV 30 Holiday Looks From Head to Toe Torn Boutique

Fri 6:30 PM · 170 guests Ozark

NOV1 Holiday Open House Torn Boutique

Nov 1, 2012 - Nov 3, 2012 · 8 guests Ozark

AUG 9 Torn Boutique's Opening Celebration Torn Boutique

Aug 9, 2012 - Aug 11, 2012 · 11 guests Ozark

Advertising
The company used to have a billboard off highway 65 two years ago. Where Torn
was seeking customers from travelers with the sign being on one of the busiest
highway coming and going from Ozark. Certainly, the billboard is no longer there
due to making payment every couple of months. Another company has taken over
the billboard and will no longer let anyone have “their” billboard.

Promotions
Torn’s current focus is promotions based on their social media platforms ranging
from 20%-40% off products sold within the store or online purchases. They also
have a text club that sends promotions via text and email, also allowing
percentages off from instore and online purchases. Giveaways are also promoted
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through all social media platforms and award winners are announced through the
platforms as well.

New Marketing Plan

Marketing Updates
Our new target market for Torn is the ages 30- 55. We chose this target
market because of previous purchase history and Carissa has previously stated this
age group is who she caters to. As for marketing updates, we would like to focus
on social media platforms and advertising. Our biggest change for her current
social media platforms is using both organic and inorganic posts. This will allow
for more individuals to see her posts that do not already follow her accounts. We
would also like to focus on Facebook and Instagram, again keeping the target
market in mind. Please see the “Social Media” section below for more information
pertaining to each platform.
We would also like to make a few suggestions
when it comes to advertising. Our first is a simple
fix, signage. We believe the signage should be
simple and direct. One, having the name of the
boutique and two, having the address. We would like
signs located on North 3rd Street (the main street in
Ozark), East Brick Street, East Church Street and
East Elm Street. Having signage on these streets will
provide drive by traffic with the information that
there is a boutique near and where you can find it. Without signage, a lot of people
are simply missing the boutique because they don’t know about it.
Our group would also like to bring back the billboard located on Highway.
As mentioned previously, Carissa stated her old billboard was successful and
brought in traffic from the highway. We think this will be successful for her
business because Highway 65 is extremely populated (especially during the
summer months) and put Torn out in the open. The location of the billboard should
be located between Springfield and Ozark or Ozark and Branson.

Social Media

The Blog
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For the new marketing plan, we are going to cut out the blog. We do not find it
necessary to keep if we were to revamp all of her social media platforms that we
are keeping. A lot of people will go to her social media like Instagram, Facebook,
Twitter, and Pinterest so having the blog is just reiterating all of the same stuff that
her other 4 platforms already promote and advertise.

Facebook
Right now Carissa has an organic Facebook and Instagram right now meaning that
you are not paying for your post to be sponsored on other people's social media
feed. So when people see your post they are seeing it due to when they get on their
social media and when it pops up on their feed. Inorganic is where you pay for
your post to be sponsored. This means that even if people do not follow you when
they are going through their timeline or stories and a sponsored post of yours will
show up on their feed anytime. Whether it’s when they are clicking through their
stories or scrolling down their Facebook or Instagram page. It can show up either
way.

Cost to sponsor your post:

You pick how many days and how much you want to pay and then it will charge
your account. It will then tell you the estimated reach. For $6.00 you can reach
around 200 people.

Instagram
To follow along with the inorganic Carissa should start making IGTV. Since we
decided to cut out the blog IGTV is another way to promote your clothing and
business through your social media. Instead of posting pictures of outfits you can
make videos. For example, how to style a shirt multiple ways so followers and
people on Instagram can watch. You could use this tool a lot to your benefit. IGTV
– Doesn’t cost; goes along with your page.

Twitter
You can promote your business on Twitter with the Ad Campaigns. With the Ads
you can get more likes, make your messages reach more audiences, and get more
people to see your business. The cost of Twitter is to pay for specific results you
need, such as new account followers or sending traffic to your website. You get to
decide how much you will pay for each interaction such as a new follower or click
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to your website. There is another option which is automatic bidding which

determines the best bid cost based on your budgets and goals.

Pinterest
Pinterest is a great tool to have because if you post from what you are using from
your Instagram feed people could Pin the item which could help get your name out
there. A lot of people use Pinterest as an inspiration with their outfits and ways
they could style garments. If Torn puts their flat lays and outfits on models on their
Pinterest people could start pinning it to their board and so on and it could keep
growing. So when they click on that Pin it could take them to Torn Boutique.
There is no cost for Pinterest. Therefore, as a team we agree to have as many ads
that are free of cost.

Marketing Calendar
The following marketing calendar is for the entire 2020 year. This month by month
calendar provides multiple for sale events that Torn could potentially have in the
future. All events are color coded in pink and shown with a circle. The calendar
also provides the days that Torn should post when they have an upcoming event.
All social media posts are color coded in green and are shown with a triangle. We
hope this allows for a better understanding of when to have events/ new ideas for
events and when to post for the upcoming events. The marketing calendar will also
give you a better idea of when to use organic advertising verses inorganic
advertising.
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Store Improvements

Torn has a very unique store and we would like to keep it within the house
located on Brick Street. With that being said, we would like to make a few changes
on the outside and in the inside of the boutique.

Outside
Our first idea for the outside of the house is to create a big front window. A
large front window will allow for individuals who drive by to recognize that it is a
boutique, allow for the Torn to showcase merchandise enticing customers to come
inside and provide natural lighting within the store. With the front window, we
would also like to remove some of the landscaping in front of the house. Of course
we understand that there has to be some landscaping, but we would like to have a
simpler clean look, not taking away from the merchandise in the window. Lastly,
we would like to add signage to the front of the house. The Torn sign in the front
yard is great for customers driving by, but we also believe that having a sign on the
house could also be beneficial and a cheap add on.
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Inside
As a team we would like to suggest a few updates and improvements to
really enhance the appearance of Torn. First, we would like to suggest having new
floor sets. We understand the pain and hassle this can be, but having a new floor
layout can bring interest to the store and give the customer a new view. We would
also like to suggest categorizing your fixtures. As of now, fixtures are outfitted and
this can be a great way to add to the sale, but the few times we visited the store the
fixtures were messy and hard to find the product we were looking for. We also
have a suggestion of moving the jewelry closer, if not into the fitting rom area. To
clarify, we do not think the jewelry should go into the fitting room, but into the
area right outside or even the corner on the left side before you enter the fitting
room area. We believe this can enhance your jewelry sales and add to any
customer’s outfit.
Lastly, we have an idea of the vacant upstairs area. We would like to open
this area for prom/ homecoming dresses. We chose this type of product because of
the large high school located in Ozark and the lack of bridal and prom shops within
the area. We also think this could be a good test because you would not be busy the
entire year. Your main focus would be in the fall and in the spring. This will also
bring in a new age of cliental, while still focusing on our new target market with
the mother that will be bringing their daughters in to look for a dress.

Truck Locations

Having a way to transport Torn’s product is a huge advantage, but we believe the
truck is not being used to its full potential. Keeping in mind that you are not the
biggest fan of travel we have come up with a few suggestions for the surrounding
areas.

Springfield

Our first location is Springfield. Springfield has great opportunities at the colleges,
antique shop hops, KGBX women’s show and festivals such as cider days. We
love that you have attended some of these events in the past but we now
recommend to always bring your truck and keep in tone with the outside events.

Ozark
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Ozark has an incredible opportunity with the upcoming building of the Ozark Mill.
We would love to see Torn have a vendor within the Mill of be able to bring the
truck on the weekends in order to benefit from both the house and the truck within
the same town. Ozark is also a great place to be open to house events. Hosting
house parties can be an easy way to get your name out, have a short drive and cater
for to the older half of our new target market.

Branson

Branson also has great opportunities when it comes to traveling with the truck. We
recommend pop-up shops outside of large festivals and shopping events. Branson
can also be a good house event location. We chose Branson because of the high
tourist population and the short drive from Ozark.

Financial Information
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Table 1.1

Our first step in gathering the financial data was to list Torn’s merchandise
categories. The categories we chose are top (blouses/sweaters), bottoms
(pants/shorts), dresses/skirts, jackets/outerwear and accessories
(shoes/purses/jewelry). The categories were chosen based of similarity and what
Torn currently has in store. We then decided what percentage of Torn’s total
planned gross sales will be for each category. This information was forecasted
based on our understanding of Carissa’s sales. For example, Carissa stated that
jeans were her top seller, making this her highest planned percentage at 30%. After
choosing the percentage, each percentage was multiplied by Torn’s net sales in
order to get each categories planned dollar amount.
Our next step was to decide what percentage of each category will come
from regular-priced sales and which will come from markdown sales. As a group
we forecasted each percentage from the knowledge we have gained from our
classes and from the information Carissa has given. Again, Carissa said that her top
two seller were jeans and her charcoal toothpaste. We made sure to make the
bottoms and accessories the highest regular-priced sales %, while having jackets
and outerwear the lowest regular-priced sales % due to the change of weather in
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Missouri and after multiple visits to Torn seeing jackets/outerwear in the clearance
area each time.
Lastly, we took our information one step forward by determining the
average retail price points per category. Please see Table 1.5 for a further
explanation of how we gather and forecasted our information.

Table 1.2

Table 1.2’s information was gathered from both Table 1.1 and 1.5. By using
the pervious tables, we were able to forecast the total cost of each category (regular
and markdown prices) and calculate the gross profit and gross margin. In this case
Torn’s gross profit is forecasted to be $80,214 meaning this is the dollar amount
Torn is making after deducting costs associated with making and selling its
products. The biggest take away from this table in our opinion is, does your gross
margin allow you (Carissa) to pay for operating costs and generate a profit. Is
48.7% a good gross profit for you?
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Table 1.3

Our next table is a Monthly Sales Plan. We created a 12 month sales plan
including the percentage of total year sales, monthly sales plan and a justification
of why we chose the percentages we did. The data gathered if from the information
Carissa shared with us and what we have learned in class. For example, Carissa
stated that her highest selling month is November and her lowest selling month
was February. The number that was given for Torn’s sales plan in February came
out to be lower that 1% of the total yearly sales plan, so we decide to round up to
1% making the total for February $2,387 instead of the $1060. Other than that
minor adjustment, percentages were chosen based on holidays and big sale months.
This information being based off of everyday retail stores.
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Table 1.4
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Table 1.4 is our Profit and Loss Statement. This is the last table that we
completed and will be divided into 12 months. We began by taking the information
from table 1.3 (Monthly Sales Plan) and placing each amount in the first row. Our
next step was to decide what we were going to divide evenly for each month. For
example, some that we chose were security/internet, POS system maintenance,
accounting and rent. Some the other that were not evenly divided by twelve were
payroll taxes and staffing. Once each month is completed total all expenses for the
month and then subtract those expenses from the gross profit. This will determine
whether you will have a profit or a loss. Good news, Torn made a profit each
month according to our table. The biggest take away from this table is how much
of your monthly revenue is spent on inventory and how much is left over to pay for
expenses and to realize a net profit for each month.

Table 1.5
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Table 1.5 is our Opening Inventory Plan. From left to right this table has
Torn’s average retail cost for the five categories we have chosen, the average cost,
a forecasted % price point (percentage of products sold at this price point),
forecasted product count/price point (total amount of product sold at each price
point, planned percentage and total cost. In order for us to calculate the grand total
we took the total cost of goods sold from Table 1.4 equaling $11, 173.48. We then
took $11,173.48 and divided it by the planned turnover of 3.5 (forecasted). Giving
us a grand total of $3,192.42 and the value of opening (average) inventory. This is
the amount of money that Torn will have to budget to purchase opening inventory.