PLEASE SHOW WORK! Retail Math

Initial Margin & Initial Margin Mix Homework

A buyer has purchased $5,000$ units of a new product. The product costs $$4\mathrm{.}00$ per unit. If the buyer

needs an initial margin of $35\%,$ what should be the initial retail price on this product?

A local clothing store is carrying a new line of merchandise. Included in this new line is a coat which

costs $$40$ and retails for $$80.$ What is the markup $\%$ on this coat?

A category manager has a budget for the upcoming year of $$50,000$ at cost$.$ Their target IMU$\%$ is

$60\%.3$ months into the buying season this category manager has spent $$20,000$ of their budget. The

IMU$\%$ on the purchased merchandise is $55\%.$

What IMU$\%$ is needed on the remaining merchandise $($the merchandise they will purchase in the future$)$

in order to achieve the target IMU$\%$ for the entire category?

A locally owned home goods store has decided to test a new product line. The owner is unsure of

how well the products will sell, so has chosen to try only $4$ SKU's. For this new product line to be

successful, the owner feels it needs to have an IMU$\%$ of at least $52\%.$

Projected cost and retail for the $4$ SKU's is shown below. Based on these numbers, what would the

IMU$\%$ be for the entire line of merchandise? Will it achieve the targeted IMU$\%?$ If not, what would you

recommend the store owner do to fix the problem?