Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / While she was at the store, it purchased 797 dress shirts that were listed for $78 each less trade discounts of 12%, 5%, and 4% from FXFusion in Vancouver

While she was at the store, it purchased 797 dress shirts that were listed for $78 each less trade discounts of 12%, 5%, and 4% from FXFusion in Vancouver

Economics

While she was at the store, it purchased 797 dress shirts that were listed for $78 each less trade discounts of 12%, 5%, and 4% from FXFusion in Vancouver. The store's operating expenses are 26% of cost and markup is 53% of cost.

The store sold 481 shirts at the regular selling price. During a sale, it offered a markdown of 12% and sold another 248 shirts. It sold another 68 shirts at the break-even price.

Using your break-even price and regular selling price calculated in the previous questions, what would the rate of markdown have to be to reduce the selling price to the breakeven price

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Computation of the rate of markdown:-

Total dresses = 797

After trade discount the price is = Listed price * (1 - 12%) * (1 - 5%) * (1 - 4%)

= $78 * 88% * 95% * 96%

= $62.60

Regular selling price = $62.60 * (1 + 53%)

= $95.78

Total cost per shirt = $62.60 * (1 + 26%)

= $78.88

Break even price per shirt = $78.88

Rate of markdown = (Regular selling price - Break even price pet shirt) / Regular selling price

= ($95.78 - $78.88) / $95.78

= $16.90 / $95.78

= 17.65%