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Unformatted text preview: 3,000 Less: Markup (3,000 x 34%) (1,020) Ending inventory at cost 1,980 Markup = 29,500 (86,000 56,500) Markup % = 34% (29,500/86,000) Assumptions: (1) Items in ending inventory are sufficiently homogeneous same mark-up & same proportion in ending inventory & goods available for sale. (2) The cost-to-retail percentage remains relatively constant over time (or changes in retail prices parallel changes in costs)....
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- Fall '08