Question

On April 1, the men s furnishings department had an opening inventory of $170,000 at retail with a markup of 48.0%. During the month the buyer purchased additional merchandise which was $80,000 in retail with a 52.0% markup. Determine the cumulative markup percent for the department at the end of April (Show two decimal places).

Answer 1

Answer: There is 49.28% of cumulative markup for the department at the end of April.

Step-by-step explanation:

Since we have given that

Price of opening inventory = $170,000

Mark up rate = 48%

Amount of mark up is given by

$\dfrac{48}{100}\times 170000\\\\=\ 81600$

Price of additional merchandise = $80000

Mark up rate = 52%

Amount of mark up is given by

$\dfrac{52}{100}\times 80000\\\\=\ 41600$

So, total mark up would be

$81600 + $41600 = 123200

So, the cumulative markup percentage for the department at the end of April is given by

$\dfrac{123200}{170000+80000}\times 100=\dfrac{123200}{250000}\times 100=49.28\%$

Hence, there is 49.28% of cumulative markup for the department at the end of April.