Question

A buyer plans to purchase jackets at a 58% markup with a retail value of $18,500. If the buyer acquires 100 jackets at $54.75 each and retails them at $125 each, what markup percentage must now be obtained on the balance of the purchases in order to achieve the desired markup percentage?

Answer 1

markup = 0.58*18,500

            = $10,730

markup made on 100 jackets = (125 - 54.75)*100

                                           = $7,025

Remaining retail value of jacket needed to be purchased = $18,500 - 125*100

                                              = $6,000

Remaining markup needed = $10,730 - 7,025

= $3,705

Required percentage markup = 3,705 / 6,000

   = 61.75%