Question

The junior tops buyer plans to purchase 100 long sleeve shirts and 200 short sleeve shirts for an upcoming sale. She buys 100 long sleeve shirts at $18.00 cost (each), and the unit retail price she plans to place on these shirts is $38.00. The markup goal for the entire purchase is 52%. If she plans to retail the short sleeve shirts for $25, what is the maximum cost she can pay for each short sleeve shirt so that she meets her markup goal?

The answer is $12.12 I just don't know how to get there.

Answer 1

Number of long sleeve shirts purchased = 100 @ 18

Number of short sleeve shirts purchased = 200 @ x (assume)

Total purchase cost = 100*18 + 200*x

= 1800 + 200x

Mark up = 52%

Therefore, total sales value = (1800 + 200x)*1.52

= 2,736 + 304x

Retail price tag for long sleeve shirt = 38

and for short sleeve shirt = 25

Therefore, total retail sales value = 38*100 + 25*200

= 8,800

So, 2,736 + 304x = 8,800

304x = 8,800 - 2,736

304x = 6,064

x = 19.95

Therefore, the maximum price she can pay for short sleeve shirt is 19.95