Question

a clothing store office very often various promotions to attract customers but wants to maintain the same amount of profit to do this the store mark up prices above retail and then advertises a deal that results in a markdown equivalent to a retail price the retail prices of a necktie is $59.99 the store offers a buy 2 get 1 free deal on neckties what is the new retail price during this promotion what is the markup and what is the markup percent on a tie during the promotion.

Answer 1

Since 3 neckties will be out from the store, so you need to know how much is the cost of 3 ties.

$59.99 x 3 = $179.97 and divide it by two because the costumer will only pay for 2

$179.97 / 2 = $89.99 is the new price

Mark up = 89.99 – 59.99 = $30.00

% mark up = [(89.99/59.99) -1] * 100

= 50%