Question
Asked Oct 28, 2019
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A hosiery buyer has an opening stock figure of $180,000, at retail, which carries a 52% markup. On March 31, the new purchases season-to-season amounted to $990,000 at retail, carrying a 54% markup. What is the CMU percentage on merchandise handled in this department? 

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Expert Answer

Step 1

Calculate the amount of total ...

Component
Markup
Retail ($)
Cost ($)
Opening stock
180,000
86,400
Purchases
990.000 455.400
1,170,000 541,800 628,200
Total
Working notes:
Calculate the cost of opening stock
Opening stock cost $180,000x (100-52)%
$86, 400
Calculate the cost of purchases
$990,000 x (100 -54)%
Purchases cost
= $455,400
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Component Markup Retail ($) Cost ($) Opening stock 180,000 86,400 Purchases 990.000 455.400 1,170,000 541,800 628,200 Total Working notes: Calculate the cost of opening stock Opening stock cost $180,000x (100-52)% $86, 400 Calculate the cost of purchases $990,000 x (100 -54)% Purchases cost = $455,400

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