Question

Show your work and write out your equations to receive partial credit. Carry out answers in $'s to the closest $ and %'s to one decimal place (unless your answer is a whole #). Label your answers. 1. For the month of July, a sporting goods department had net sales of $100,000. The billed cost of goods, including freight, was $60,000. Cash discounts amounted to $2000 and there were workroom costs of $1000. Calculate in dollars: a) (1.5 points) The maintained markup $: b) (1.5 points) The maintained markup %: c) (1.5 points) The gross margin $: d) (1.5 points) The gross margin %:

Answer 1

Sales Cost inc frieght Gross Profit Cash Discount Work room cost Net profit 100000 60000 40000 2000 1000 37000 Markup Maintained Sales-Discount = Retail price Retail Price - COGS - other costs = 98000-60000-1000 = 37000 Markup = (Actual Retail price - Cost / Actual Retail Price) 37000/98000 = 37.75% Gross Margin = 40000 Gross Margin % = 40000/98000 = 40.82%