Question
Asked Oct 28, 2019

 

 

Casual Fashions had sales of $280,000. Operating expenses were $65,000 and alterations were $400. Planned profit was $28,000 and planned reductions were $2,200. What was the initial markup percent? (

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Step 1

The initial markup is stated as the markup needed on all items to make sure that cost of all the products are covered including coincidental costs, in order to make sure that a reasonable profit is obtained. The initial markup is communicated in terms of percentage.

Step 2

To calculate initial ma...

Operating expenses+reductions+profit+Alterations
Netsales+reductions
Inititalmarkup percentage=|
x100
$65,000+$2,200+S28,000+$400
$280,000+$2,200
x100
$95,600
x100
$282,200
33.87%
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Operating expenses+reductions+profit+Alterations Netsales+reductions Inititalmarkup percentage=| x100 $65,000+$2,200+S28,000+$400 $280,000+$2,200 x100 $95,600 x100 $282,200 33.87%

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