I need some clarification, especially on part A,

1. If the buyer took advantage of this special purchase what would the markup for the entire purchase be based on the regular retail price? (Note: You need to calculate the total cost and total retail for both purchases in order to solve for the markup)

Does both purchases mean the original order and the special order?

CASE STUDY PRICING IN MERCHANDISING In mid-October, a key vendor offers a missy top department store buyer a group of long sleeve crew neck knit tops that it had previously purchased. The vendor has 4,800 units of assorted kmit tops available that it can sell to the buyer for a reduced cost price of $6.00; the regular cost price of the tops was $9.00. The buyer previously priced these tops at $29.00, In order to secure the reduced cost price, the buyer has to buy the entire 4,800 umit availability. The vendor has the following color assortment: Striped knit tops, 2,400 units Solids of black and ivory, 1,440 un its Paisley print knit tops,960 units The yendor can ship this assortment and it will be in store by the end of October. The buyer previously purchased the same tops that started selling in mid-September; approximately four weeks of sales have been recorded. Here is a recap of what was received and what was sold in the four-week time period: Average units soild per week Units sold in Units on hand Calorprint nits purchased eeks Stripes mid-October 10,000 2,700 675 7,300 Solids 15,000 1,500 1,125 10,500 Paisley 7,200 1,400 350 5,800 As these are long sleeve knit tops, the buyer set an outdate for November 30 (approx- imately seven weeks from mid-October). Before the vendor discussed the availability with the buyer, there was a promotion planned on the tops for an Election Day sale at $24.99. The buyer has reviewed the selling and feels the purchase would ultimately be advantageous because increased departmental activity will lead to improved sales. 'The buyer's planned markup per- centage for November is 64.0%. To make the correct decisions, the following ques- tions must be answered: a. If the buyer takes advantage of this special purchase, what would the markup for the entire purchase be based on the regular retail price? b. What should the knit tops be promoted at for Election Day? Will $24.99 be a significant incentive for customers to buy multiple units, or should the buyer restrategize the pricing for the event? What promotions would you recommend? CASE STUDY ] PRICING IN MERCHANDISING 125