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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.
What is the initial percent markup based on selling price?
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?
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?

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