Determine the initial markup % for the men's sportswear department, which has these figures:

Net sales $175,000

profit 3.8%

Expenses $66,000

Discounts for employees 1.2%

Discounts 3.5%

Cash discounts $4,375

Shortage $1,000

Alteration costs $2,000

20. Determine

(a) the markup percentage maintained and

(b) the gross margin percentage for a department that has the following figures:

Net sales $475,000

Net purchases 210,000

Opening inventory 115,000

Inward freight 3,200

Closing inventory 95,000

Discounts for prompt payment 4,850

Alteration costs 2,150

Answer rating: 100% (QA)

To determine the initial markup for the mens sportswear department we need to use the following formula Initial Markup Gross Profit Net Sales x 100 wh... View the full answer