Question: Maintained markup is 39 percent, net sales are $52,000, alterations are $1,700, shrinkage is $500, markdowns are $5,000, employee discounts are $2,000, and cash discounts

Maintained markup is 39 percent, net sales are $52,000, alterations are $1,700, shrinkage is $500, markdowns are $5,000, employee discounts are $2,000, and cash discounts are 2 percent. What are gross margin in dollars and initial markup as a percentage? Explain why initial markup is greater than maintained markup.

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Gross margin GM Maintained markup Cash discounts Alterations GM 52000 39 52000 02 1700 GM 20280 ... View full answer

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