Question

The sportswear department had an opening inventory of $95,000 at cost with a markup of 45.5% on March 1. During the month, the buyer for the department purchased additional merchandise with a retail value of $50,000 with a 48% markup. Calculate the cumulative markup percent for March.

Answer 1

Answer:

46.16%

Explanation:

cost of opening inventory = $95,000

markup of the opening inventory = $95,000 x 45.5% = $43,225

the cost of the the month's purchase:

0.48 = ($50,000 - C)/C

0.48C = $50,000 - C

1.48C = $50,000

C = $50,000/1.48 = $33,784

markup of month's purchase = $50,000 -$33,784 = $16,216

cost of the total inventory = $95,000 + $33,784 = $128,784

total markup = $43,225 + $16,216 = $59,441

cumulative markup = $59,441 / $128,784 = 0.4616 = 46.16%