Earlier in the year, a sporting goods store bought thirty pairs of football boots at a cost of $25.00 each and they were priced to sell at $36.00 each. As the season is nearly over, it plans on marking down the remaining ten pairs by 26 percent.
Round your final answers properly to two decimal places.
a) What is the total cost?
b) What is the sale price?
c) What is the total markdown?
d) What is the total sales (TS)?
e) What is the effective markup rate based on the (total) selling price?
a) There are 30 pairs of boots and each pair was bought at a price of $25.00 The total cost is:
`C = 30*$25.00 =$750.00`
b) The initial price to sell of a pair of boots is $36.00 The discount is 26%. The sale price for a pair of boots is:
`S = (100%-26%)*$36 =74%*$36 =74/100*$36 =$26.64`
c) The total markdown is the difference between the initial price to sell and the sell price:
`M =$36.00-$26.64 =$9.36`
d) There were sold 20 pairs of boots at a price of $36.00 and 10 pairs of boots at a price of $26.64 The total sales is
`TS = 20*36.00 +10*26.64 = $986.40`
e) The effective markup is the difference between the total selling price and the total cost:
`EM =$986.40-$750.00 =$236.40`
The effective markup rate is the effective markup reported to the cost.
`EMR = 236.40/750.00 =0.3152 =31.52/100= 31.52%`