Question

Define Cumulative Markup: Determine the initial markup % that should be planned based on the following information: net sales $45,000.00 markdowns profit $4,500.00 alterations costs expenses $17,000.00 cash discounts shortages $900.00 employee discounts $1,300.00 $12,000.00 $500.00 $2,500.00 On January 1, the contemporary sportswear department had an opening inventory of $225,000.00 at retail with a 55% markup. During the month of January merchandise costing $65,000.00 with a 60% markup was received in the department. What was the cumulative markup % for this department for the month of January? opening Total Inventory purchases Merch. Handled Retail Cost Markup % Explain the difference between Gross Margin and Maintained Markup:

Answer 1

14.

Initial markup percentage = (Operating expenses + Net profit + Markdowns + Stock shortages + Discounts + Alteration costs - Cash discounts) / (Net sales + Markdowns + Stock shortages + Employee and customer discounts)

Initial markup percentage = (17000+4500+12000+900+1300+500-2500)/(45000+12000+900+1300)

Initial markup percentage = 33700/59200 = 0.5693

Initial markup percentage = 56.93%