# Holiday Hardware purchased 60 items at a list price of $44 less 17%, 9%. The items were marked up 71% of the selling price. Ten of the items sold at a markdown of 30%. Five sold at a markdown...

Holiday Hardware purchased 60 items at a list price of $44 less 17%, 9%. The items were marked up 71% of the selling price. Ten of the items sold at a markdown of 30%. Five sold at a markdown of another 47%. The remainder sold at the regular selling price. What is the effective markup rate based on sales?

Round your final answer properly to two decimal places. Do not enter the % symbol in the answer box.

a) What is the Cost (C) per item?

$

b) Using your rounded answer in a) what is the Total Cost (TC)?

$

c) What is the selling price?

$

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

$

e) What is the selling price after the second markdown?

$

f) Determine the total sales (TS).

$

g) What is the effective markup based on sales?

%

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### 1 Answer

Holiday hardware purchased 60 items at a list price of $44 less 17% less 9%.

(a) Cost price per item:

=$44*0.83*0.91

=**$33.23**

(b) Total cost=$33.23*60=**$1993.80**

(c) The items were marked up 71% of the selling price. The selling price for each item was

=$33.23(1+0.71)=**$56.82**

Ten of the items were sold at a markdown of 30%.

Selling price of these ten items were at $56.82(1-0.30)=$39.77

(d) Selling price after first markdown was **$39.77**.

Five of the items were sold at a markdown of another 47%.

Selling price of these five items were at $39.77(1-0.53)=$18.69

(e) Selling price after second markdown was **$18.69**.

The remaining (60-(10+5)), i.e. 45 items sold at regular selling price, i.e. at $56.82 each.

(f) Total sales =($39.77*10+$18.69*5+$56.82*45)=**$3048.05**

(g) Effective mark-up rate based on sales=(Eventual total selling price-total cost price)/total cost price

= (3048.05-1993.80)/(1993.80)

=**52.88%**