1. A well-known local wine shop uses keystone pricing for its line of modular wine racks.

12 bottle racks, natural finishPer item Cost:22.50
12 bottle racks, mahogany finishPer item Cost:26.25
24 bottle racks, natural finishPer item cost:36.00

Given this pricing practice, use the cost information here to calculate the retail prices for the following items. Show your calculations:
What is the markup percentage being used for these wine racks?
(c) If these wine racks are sold at the prices you calculated in Part (a), what would be the shop’s percent gross margin for these items?