Question

A buyer needs 150 blouses to retail at $15 each and 80 shirts to retail at $20 each. She needs to average a 50.5% markup. If she pays $7 for each blouse, how much can she pay for each shirt in order to achieve the planned markup percent?

Answer 1

Total Sales= [No. of Blouses * selling price] + [ No. of shirts * selling price]

= [150 * $15] + [80 * $20]

= $2,250 + $1,600

= $3,850

Let x = amount paid for shirt

Total Cost =[No. of Blouses * purchase price] + [No. of shirts * Purchase price]

= [150 * $7] + [80 * x]

= $1,050 + 80x

Overall market = 50.5%

Markup = (Total Sales value - Total Cost Value) / Total Cost Value

50.5% = ($3,850 - ($1,050 + 80x)) / ($1,050 + 80x)

40.4x + $530.25 = $3,850 - $1,050 - 80x

120.4x = $2,269.75

x = $18.8517442

Therefore, price can be paid for shirt is $18.85