Question

Sarah's Sunglasses Shack purchases a case of the latest model of Maui Jim sunglasses for $69/pair. If Sarah sells the sunglasses for $119 what is her markup? A) $40 B) $50 C) $60 D) $70 A) Sarah's Sunglasses Shack purchases a case of the latest model of Maui Jim sunglasses for $69/pair. If Sarah sells the sunglasses for $119 what is her markup on cost percentage? 42.0% B) 54.2% C) 62.6% D) 72.5% Sarah's Sunglasses Shack purchases a case of the latest model of Maui Jim sunglasses for $69/pair. If Sarah sells the sunglasses for $119 what is her markup on price percentage? A) 42.0% B) 54.2% 62.6% 72.5% C) D) Sarah's Sunglasses Shack purchases a case of the latest model of Maui Jim sunglasses for $69/pair. If Sarah sells the sunglasses for $119 what is her gross margin percentage? A) 42.0% B) 54.2% C) 62.6% D) 72.5% Sarah's Sunglasses Shack purchases a case of the latest model of Maui Jim sunglasses for $69/pair. If Sarah applies her target markup on cost of 120%, what will the retail price be? A) $129.99 $144.75 C) $151.80 D) $172.50 B)

Answer 1

Part 1

Answer is option B

B. $50

Markup = price – cost = 119-69 = $50

Part 2

Answer is option D

D. 72.5%

Markup on cost (%) = markup / cost * 100 = 50/69 * 100 = 72.5%

Part 3

Answer is option A

A. 42.0%

Markup on price (%) = markup / price * 100 = 50/119 * 100 = 42.0%

Part 4

Answer is option A

A. 42.0%

Gross margin (%) = (price – cost)/price * 100 = (119-69)/119*100 = 42.0%

Part 5

Answer is option C

C. 151.80

Mark up ($) = cost + cost * markup (%) = 69*120% = $82.80

Retail price = cost + markup = 69+82.80 = $151.80