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...

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?

the correct answer is $  37.80

b) Using the rounded value for a) what is the Total Cost (TC)?

the correct is $   113400

c)  What is the regular selling price?

this is the wrong answer i got $   58.59

d)  What is the sale price after the first markdown?

this is the wrong answer i got $   41.01

e) What is the total sales (TS)?

this is the wrong answer i got $   159107.60

f)  What is the average percent markup based on selling price?

   this is the wrong answer i got 40.3 %

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embizze | High School Teacher | (Level 1) Educator Emeritus

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The company purchased 3000 units; the original cost was $55 but was reduced 21% and a further 13%.

The company sells 70% at full price and the remaining 30% were reduced 30%. At the end of the sale there were 40 items left that sold at $20.

(a) The cost: 55(1-.21)(1-.13)=37.8015 so the cost for each unit rounds to $30.80

(b) The total cost, using the rounded figure, is 3000(30.8)=$113400

(c) Find the regular selling price: There is a 55% of the selling price markup added to the cost for the retail price. Then 45% of the selling price reflects the cost and the selling price is `30.8/.45=$68.44`

(d) The sale price after the first markdown is $47.91 per unit. (68.44*(1-.3)=47.91)

(e) Total sales: 2100 sold at full price, 860 sold at 30% off, and the last 40 sold at $20:

Total sales = 2100(68.44)+860(47.91)+40(20)=$185726.60

(f) The average percent markup (effective markup) based on sales (often called markon) is found by `"effmu"=("sales"-"cost")/"sales"`

So effective markup = `(185726.6-113400)/(185726.6)~~38.94%`

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