In department and specialty store retailing, a common markup strategy is to double the cost of an item to arrive at the selling price. This strategy is known as keystoning the markup and is widely used in apparel, cosmetics, fashion accessories, shoes, and other categories of merchandise. The reasoning for the high amount of markup is that these stores have particularly high operating expenses. In addition, they have a continuing need to update fixtures and remodel stores to attract customers. You are the buyer in the women's shoe department of the Roma Grande Department Store. You normally keystone your markups on certain shoes and handbags. This amount of markup allows you enough gross margin so that you can lower prices when "sales" occur and still have a profitable department. (a) If you are looking for a line of handbags that will retail for $180, what is the most you can pay for the bags (in $)? 2$ (b) At a women's wear trade show, you find a line of handbags that you like with a suggested retail price of $110. The vendor has offered you trade discounts of 25/20/8. Will this series of trade discounts allow you to keystone the handbags? because after the trade discounts the cost of each handbag is -?- (c) (Challenge) The vendor tells you that the first two discounts, 25% and 20%, are fixed, but the 8% is negotiable. What is the minimum trade discount (as a %), rounded to a whole percent, that you should request in order to keystone the markup? %
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
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