Question

A buyer needs 150 blouses to retail at $15 each and 80 shirts to retail at $20 each. She needs to average a 50.5% markup. If she pays $7 for each blouse, how much can she pay for each shirt in order to achieve the planned markup percent?

Answer 1

Answer:

To achieve the planned markup percent, she can pay for each shirt, the price of:

$18.85

Explanation:

a) Data and Calculations:

Number of blouses to retail at $15 each = 150

Total revenue from blouses = $2,250 (150 * $15)

Number of shirts to retail at $20 each = 80

Total revenue from shirts = $1,600 (80 * $20)

Total sales revenue = $3,850

Average markup = 50.5%

Therefore, the cost of the blouses and shirts = $3,850/1.505 = $2,558

If the cost of blouse = $7 each, the total cost of blouses = $1,050 (150 * $7)

Therefore, the cost of shirts will be equal to $1,508 (2,558 - $1,050)

Then, the cost of each shirt will be equal to $18.85 ($1,508/80).