Question

A store plans sales of $1,100,000 and retail reductions of $330,000, and it requires expense, $350,000 and profit $50,000. What should be the initial markup dollars?

Answer 1

Answer:

initial markup is $0.510489  or 51.0489%

Step-by-step explanation:

Given data

sales of $1,100,000

reductions of $330,000

expense, $350,000

profit $50,000

to find out

initial markup

 

solution

we know initial markup formula that is given below

initial markup = (Expenses + Reductions + Profit) ÷ (Net Sales + Reductions)

put here all value we get initial markup

initial markup = (Expenses + Reductions + Profit) ÷ (Net Sales + Reductions)

initial markup = (350,000 + 330,000 + 50,000) ÷ (1,100,000 + 330,000)

initial markup = (730000) ÷ (1,430,000)

initial markup = (730000) ÷ (1,430,000)

initial markup is $0.510489

initial markup is 51.0489%