Question: Formulas: Initial Markup % = (Expenses + Profit + Reductions - Cash Discounts) / (Sales + Reductions) Markdown % = Dollar Markdown / Total Sales

Formulas:

Initial Markup % = (Expenses + Profit + Reductions - Cash Discounts) / (Sales + Reductions) Markdown % = Dollar Markdown / Total Sales Off-Retail % = Markdown / Original retail price

1. A store plans sales of $350,750.00 for the year. Expenses are estimated to be 30.00% of sales, and a 6.00% planned profit. Markdowns are 4.0%, shortages are 6.0% and employee discounts are 2.0%. There are no cash discounts. Calculate initial markup percentage.

2. At the beginning of the month, Brand A shirts were reduced from $79.99 to $69.99. At the same time, Brand B shirts were reduced from $74.99 to $64.99. 55 Brand A shirts and 68 Brand B shirts were in stock when the markdowns were made. At the end of the month, total sales for Brands A and B were $180,750.00. Calculate the markdown dollars and the markdown percentage for each brand.

3.A buyer of the home dcor category at Kay's Department Store had net sales of $158,750.00. The original retail and sale prices of the three reduced items are provided below.

a) Please calculate the off-retail percentage for each item.

Stock # Original Retail Sale Price

1234 $35.99 $29.99

1235 $29.99 $24.99

1236 $47.99 $39.99

b) Given the off-retail percentage, what % discount should be communicated to their customers via Kay's Department Store weekly flyer?

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