Topic: Achieving the Cumulative Markup Goal

You are the buyer for Missy Weekend Wear (casual) outlet store. For April in store, you have already purchased a coordinate group, modern contrast. The total cost for

the order is $476,735. The total retail spent is $1,339,542. Therefore, the cumulative markup % is 64.4%. As the buyer, you still need to place an order for key item T-shirts for April. These T-shirts will retail for $16.99, and you need to buy 48,944 units. The total open-to-buy for the month is $2,171,101.

Your planned cumulative markup % for April is 68.5%. Please calculate the markup percentage that you must achieve on any remaining open-to-buy to achieve the planned cumulative markup % for April. If the vendor states that the cost for the T-shirts will be $5.00, what other actions could you take to achieve the planned markup percentage?

Helpful Formulas:

Cumulative Mark Up % = ( Cumulative Markup $ / Cumulative Retail $ ) x 100

Cumulative Retail Markup % on entire purchase = [ (Total Rest $ - Total Cost $) / Total Retail $ ] x100

OR

Cumulative Retail Markup % on entire purchase = (Total markup $/Total Retail) $ x 100

Markup $ = Retail $ - Cost $

Retail $ = Cost $ / (100% - Markup %)