Question

You have planned purchases of $2,500. you have received orders that total $1,200, and you have ordered merchandise that totals $700. calculate the open-to-buy amount.

Answer 1

How to calculate Open-to-buy:
Open-to-buy = planned purchases - (orders received + merchandise ordered)

Planned purchases = $2,500
Received orders = $1,200
Ordered merchandise = $700

Open-to-buy = $2,500 - ($1,200 + $700)
Open-to-buy = $2,500 - $1,900
Open-to-buy = $600