Maintained markup is 39%, net sales are $52000, and reductions are $2500. What a

Question

Maintained markup is 39%, net sales are $52000, and reductions are $2500. What are the gross margin in dollars, and the initial markup as a percentage? Explain why initial markup is greater than maintained markup. Show all work

Explanation / Answer

net sales = cost + maintained mark up = 52000 ($) => x + 0.39 x ( x is cost of retail) = 52000 => x = 52000/1.39 = 37410.07 = say 37410 ($) Mark up = 52000 - 37410 = 14590 ($) Gross mark up MARGIN = 14590 + 2500 = 17090 ($) (ANSWER) Initial mark up percentage = 17090/37410 *100 = 45.68 % (ANSWER) Initial mark up is higher as discount is given on this to get maintained margin.

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.