The opening inventory at retail at “The Tie Place” consisted of the following: 15 dozen ties...

The opening inventory at retail at “The Tie Place” consisted of the following:

15 dozen ties priced at $25.00 each

4 dozen sterling tie clips priced at $40.00 each

50 gift boxes priced at $1.50 each

The current inventory carries a markup of 50%. During the month, a buyer purchases 4 dozen special purchase ties that cost her $8.00 each. If she plans to retail them for the same price as all of the other ties, what will be the cumulative markup on the merchandise for the month? Round to the nearest whole dollar, when calculating “$ Cost” and “$ Retail”. Round your final answer to two decimal places.

	A.	52.80%
	B.	45.91%
	C.	14.72%
	D.	52.54%

Expert Solution


Cost price	Quantity	CP = Retail price * 50 %	Amount
Special ties( purchase price )	48	8.00	384
Ties	180	12.50	2,250
tie clips	48	20.00	960
Gift boxes	50	0.75	38
			3,632	(A)

Retail sales price
Special ties	48	25	1,200
Ties	180	25	4,500
tie clips	48	40	1,920
Gift boxes	50	1.5	75
			7,695	(B)

Cumulative mark up on inventory for the month			4,064

		% of mark up	52.81

jeff jeffy answered 2 years ago

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