In: Finance
You have the following purchases by item
Item Total Retail Total Cost
T-Shirts 956 398
Caps 456 219
Scarfs 195 100
Flags 270 200
Mugs 211 100
You want to raise your markup percentage but your can't raise prices and your vendors won't give you a lower cost. What should you do?
Sell more T-shirts to change the mix | ||
Sell more flags to change the mix | ||
There is nothing you can do if you can't raise prices or get a lower cost from your vendors. | ||
Run more 50% off sales | ||
None of the above |
Profit % in sales of T-shirts =(956-398)/398 =140%
Profit % in sales of Caps =(456-219)/219 =108%
Profit % in sales of Scarfs =(195-100)/100=95%
Profit % in sales of Flags =(270-200)/200 =35%
Profit % in sales of Mugs =(211-100)/100 =111%
Option a is correct option. Sell more T-shirts to change the mix
This is because profit percentage of T-shorts is highest.