The opening inventory at retail at “The Tie Place” consisted of the following: 1

Question

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.

52.80%

45.91%

14.72%

52.54%

52.80%

45.91%

14.72%

52.54%

Explanation / Answer

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

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