For this item, any answers that are not whole numbers should be entered as decimals, rounded to the hundredth. Marissa's Fashion

Question

3 years ago

14

For this item, any answers that are not whole numbers should be entered as decimals, rounded to the hundredth. Marissa's Fashion

s purchases designer boots from a manufacturer for $50.88 per pair. Marissa then adds a certain amount to the price of the boots as a markup when she sells them in the store. The total cost for a customer buying the boots at the store is $90.10. This includes a 6.25% sales tax that is added after the markup. The percent of markup before tax is about %, which is a markup of $ per pair of boots

Mathematics

2 answers:

trasher [3.6K] · Answer 1 · 2022-04-17T11:47:05+03:00

You know that ...

... total cost = (marked-up price) + 6.25% × (marked-up price)

... $90.10 = (marked-up price) × 1.0625

Solving for (marked-up price) gives

... marked-up price = $90.10/1.0625 = $84.80

<u>Markup</u>

You also know that

... marked-up price = cost + markup

... $84.80 = $50.88 + markup

... $33.92 = markup . . . . . . . . . . . subtract $50.88

The percentage of markup can be figured a couple of different ways. It is easy to add a percentage to the cost price of an article, because the cost is generally right in front of the storekeeper when the article is received and prices are being marked. However, many accountants are interested in the percentage of the selling price that is available for overhead and profit, so they are interested in the markup as a percentage of selling price. The question here is non-specific as to the base to be used for figuring the percentage of markup.

The markup as a percentage of cost is

... $33.92/$50.88 × 100% = 66.67%

The markup as a percentage of selling price is

... $33.92/$84.80 × 100% = 40%