April gross sales (GS)

 $353,687

April customer returns and allowances % (CRA%)

3.6%

April markup % (MU%)

58.5%

May GS$

 $184,059

May CRA$

$12,000

May MU%

40.7%

June GS$

$148,052

June CRA$

$2,200

June COGS%

32.5%

Operating expenses remain the same.

This week, perform the following activities.

1. Complete the skeletal P&L statement for the spring quarter. 
2. Which month on the spring skeletal P&L statement attained the highest MU%? Why?
3. Compare CRA% for June vs. April. Explain the cause of difference between the two values.
4. What would you suggest to Julie and Tracy for the summer quarter, to correct the situation seen in the spring skeletal P&L statement? Calculate and present data to support your suggestion assuming a 5.5% decrease in operating expenses and an 8.6% increase in net sales.