View the step-by-step solution to:

Question

This question was created from Week 2 Assignment 3 answer key.docx https://www.coursehero.com/file/40140346/Week-2-Assignment-3-answer-keydocx/

40140346-398082.jpeg
40140346-398082.jpeg

achieved after "retail reductions" (markdowns) have been subtracted from the initial markup. Maintained markup is one
of the "keys to profitability" in retailing. It is the difference between the actual selling price and the cost and therefore
has a direct effect on net profits.
Maintained markup = Actual selling price - Cost / Actual Selling Price
You are the buyer for Four Aces Menswear, a chain of men's clothing stores. For the spring season, you purchased a line
of men's casual shirts with a manufacturer's suggested retail price of $29.50. Your cost was $16.00 per shirt.
a.
What is the initial percent markup based on selling price?
b.
The shirts did not sell as expected at the regular price, so you marked them down to $21.99 and sold them out.
What is the maintained markup on the shirts?
C.
When you complained to the manufacturer's sales representative about having to take excessive markdowns in
order to sell the merchandise, she offered a $2 rebate per shirt. What is your new maintained markup?

Top Answer

Here is the answer... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question