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 %
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%`