| RETAIL PRICING AND REPRICING OF MERCHANDISE (MARKUP) |
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| Correct formula and answer |
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| One or more formula errors |
| 1. If the men’s buyer purchases pants at a cost of $34.00 and has a markup of $33.00, what will be the retail price for each pair of pants? |
Cost |
Markup |
Retail |
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| Wrong formula or no formula |
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| $34.00 |
$33.00 |
| 2. If the electronics buyer purchases televisions at a cost price of $325.00 and the markup is $249.99, what is the retail price for the televisions? |
Cost |
Markup |
Retail |
|
| $325.00 |
$249.99 |
| 3. The misses sweater buyer retails cotton sweaters for $45.99, and the markup is $24.24. What is the cost price of each sweater? |
Retail |
Markup |
Cost |
|
| $45.99 |
$24.24 |
| 4. A man’s belt retails for $74.00, and the markup is $43.00. What is the cost price? |
Retail |
Markup |
Cost |
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| $74.00 |
$43.00 |
| 5. Calculate the markup dollars for a tie if the cost is $23.60 and the manufacturer’s suggested retail price is $59.00. |
Retail |
Cost |
MU $ |
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| $59.00 |
$23.60 |
| 6. If a necklace retails for $49.00 and the cost is $14.70, what is the markup in dollars and percentage at retail for the necklace? |
Retail |
Cost |
MU $ |
MU % |
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| $49.00 |
$14.70 |
| 7. If a pair of brand-name leather boots has a retail price of $249.00 and the cost is $125.00, what is the markup for the boots in both dollars and percentage at retail?
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Retail |
Cost |
MU $ |
MU % |
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| $249.00 |
$125.00 |
| Markup Practice Problems |
| Calculate the cost price given the retail and the planned MU % |
| 8. A pair of sneakers will be ticketed with a retail price of $118.00 and the markup % is 54.0%. What is the cost price for the sneakers? |
Retail $ |
Cost % |
Cost $ |
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| $118.00 |
| 9. What is the maximum cost a buyer can pay for a coat that will sell for $550 with a markup of 56.0%?
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Retail $ |
Cost % |
Cost $ |
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| $550.00 |
| 10. You are the jewelry buyer for a large mass-market chain. For the holiday season, you are planning a boxed jewelry “Gifts to Go” promotion for $19.99. The markup for the promotion is planned at 43.0%. What is the maximum cost price that you will pay for the boxed jewelry?
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Retail $ |
Cost % |
Cost $ |
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| $19.99 |
| 11. Given the following departmental markups and average retails per department, what is the maximum cost that the buyer can pay? |
Retail $ |
Cost % |
Cost $ |
| a. Sneakers, 54.4% markup; Retail price $89.00. |
$89.00 |
| b. Men’s ties, 65.7% markup; Retail price $38.00. |
Retail $ |
Cost % |
Cost $ |
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| $38.00 |
| c. Boy's apparel, 47.9% markup; Retail price $14.00 |
Retail $ |
Cost % |
Cost $ |
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| $14.00 |
| Calculate the retail price given the cost and the planned MU% |
| 12. An eye shadow compact costs $25.20, and the markup is 40.0%. What is the retail price of the compact? |
Cost $ |
Mark Up Cost |
Retail $ |
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| $25.20 |
| 13. A buyer will purchase sweaters at a cost of $37.85, and the planned MU % for the department is 62.0%. What is the minimum retail price for each sweater? What possible retail price for each sweater might be used if you were the buyer of a department store? What about an off-price retailer?
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Cost $ |
Cost % |
Retail $ |
Pricing Strategies |
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| $37.85 |
0.38 |
| Dept store: $ |
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| Off price retailer: $ |
| 14. If a graphic T-shirt costs $8.95 and the MU % is 53.4%, what is the retail price for the T-shirt? What would the pricing strategy be? |
Cost $ |
Cost % |
Retail $ |
Pricing Strategies |
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| $8.95 |
0.47 |
| $ |
| Cumulative Markup Practice Problems |
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| Description |
Quantity |
Unit Cost |
| Total Cost |
Unit Retail |
Total Retail |
| 15. A buyer purchased 50 assorted leather briefcases that cost $79.50 each and establishes retail prices based on the style as follows:
• 15 zip-top briefcases to retail for $175 each.
• 20 messengers to retail for $150 each.
• 15 backpacks to retail for $125 each.
Find the cumulative markup percentage on this purchase.
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Zip Top |
15 |
$79.50 |
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| $175.00 |
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| Messenger |
20 |
$79.50 |
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| $150.00 |
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| Backpack |
15 |
$79.50 |
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| $125.00 |
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| TOTAL |
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| MU $ = |
Total Retail -Total Cost |
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| MU $ = |
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| MU % = |
MU $/total retail $ |
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| MU % = |
| 16. The sweater buyer is buying 12,000 cashmere crew neck and 8,000 V-neck sweaters at a cost of $32.50. The buyer plans to retail the sweaters as follows:
Crew neck to retail at $74.00; V-neck to retail at $79.00
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| a. Calculate the IMU $ and IMU % for the crew neck. |
Quantity |
Unit Cost |
| Total Cost |
Unit Retail |
Total Retail |
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| 12,000 |
$32.50 |
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| $74.00 |
| MU $= Retail -Cost |
| MU $= |
| or |
| MU %= MU $/ Retail $ |
| b. Calculate the IMU $ and IMU % for the V- neck. |
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| 8,000 |
$32.50 |
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| $79.00 |
| MU $= Retail -Cost |
| MU $= |
| or |
| MU %= MU $/ Retail $ |
| c. Calculate the CMU % for the total buy. |
Total Cost |
Total Retail |
CMU $ |
CMU % |
| CMU $ =Total Retail -Total Cost |
| CMU %=CMU $/Total Retail $ |
| Cumulative Markup Application Practice Problems |
| 17. The jewelry buyer wants to spend $25,000 at retail. The department maintains a 76.7% markup. The buyer needs a minimum of 600 pairs of earrings to cover each branch with an adequate assortment. |
| a. What should be the retail price per pair?
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Retail Budget |
Units |
Retail Price |
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| $25,000 |
600 |
| b. What should be the cost per pair? |
Retail |
Cost % |
Cost Price |
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| $25.00 |
| 18. For a monthly T-shirt buy, you will be spending $22,560 at retail. Orders for $9,980 at cost have been placed. The planned MU % is 51.5%. What is left in retail dollars for you to place? |
Cost |
Cost % |
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| $9,980.00 |
| Retail Budget |
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| Plan/Budget |
Spent |
Over/Under |
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| $22,560.00 |
Fullborehemi
Module3BasicMarkupEquationsBuyingDecisions.xlsx
