Question

The men s clothing buyer had a group of 50 jackets priced at $250 each that was selling very slowly. To stimulate sales of these jackets, the buyer reduced the price of the jackets in that group to $200 At this price, 40 pieces were sold in a short time. At a later date, the remaining pieces needed a further reduction to clear them from stock. The buyer reduced them to $150 each, and at that price they all sold out. What was the total dollar markdown taken? 3000

Answer 1

Answer:

The answer is $3000.

Step-by-step explanation:

The men's clothing buyer had a group of 50 jackets priced at $250 each.

Total price of jackets = $50\times250=12500$ dollars

The buyer reduced the price of the jackets in that group to $200 and 40 jackets were sold.

So, the price for selling 40 jackets is = $40\times200=8000$ dollars

Remaining jackets =$50-40=10$

These were sold at $150 each, totaling to = $10\times150=1500$ dollars

So, overall money earned by reducing prices both time = $8000+1500=9500$ dollars

And the markdown in dollars = (original price before reducing) minus (educed total price)

= $12500-9500=3000$ dollars

So, the answer is $3000.