A company bought 3000 items at $55 less 21% and 13%. It added a markup of 55% of selling price. It was able to sell 70% of them at full price before marking down the rest by 30%. At the end of the sale it still had forty items left and it marked them down to $20.00 each, at which price all forty sold.   Round your final answer properly to two decimal places. a)  What Cost (C) per item? $ ____________  b) Using the rounded value for a) what is the Total Cost (TC)? $  ____________  c)  What is the regular selling price? $  ____________  d)  What is the sale price after the first markdown? $  ____________  e) What is the total sales (TS)? $  ____________  f)  What is the average percent markup based on selling price?   ____________ %

Expert Answers

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a) Cost of item =  55(.79) = 43.45, 43.45(.87) = $37.80

b) TC = 37.80(3000) = $113,400

c) Regular selling price (55% markup) = 37.80(1.55) = $58.59

d) Sale Price after the first markdown = 58.59(.70) = $41.01

e) TS = $58.59(.70 x 3000) + $41.01(3000-2100-40) + $20(40) = $123,039 + $35,268.60 + $800 = $159,107.60

f) `(159107.60 - 113400)/113400 = .403`

  Average % markup based on selling price is 40.3%

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