RETAIL PRICING AND REPRICING OF MERCHANDISE (MARKUP)
- If the men’s buyer purchases pants at a cost of $34.00 and has a markup of $33.00, what will be the retail price for each pair of pants? Cost
$34.00
- If the electronics buyer purchases televisions at a cost price of $325.00 and the markup is $249.99, what is the retail price for the televisions?
Cost $325.00
- The misses sweater buyer retails cotton sweaters for $45.99, and the markup is $24.24. What is the cost price of each sweater?
Retail
$45.99
- A man’s belt retails for $74.00, and the markup is $43.00. What is the cost price? Retail
$74.00
- Calculate the markup dollars for a tie if the cost is $23.60 and the manufacturer’s suggested retail price is $59.00. Retail
$59.00
- If a necklace retails for $49.00 and the cost is $14.70, what is the markup in dollars and percentage at retail for the necklace? Retail
$49.00
- If a pair of brand-name leather boots has a retail price of $249.00 and the cost is $125.00, what is the markup for the boots in both dollars and percentage at retail?
Retail $249.00
Markup Practice Problems Calculate the cost price given the retail and the planned MU %
- A pair of sneakers will be ticketed with a retail price of $118.00 and the markup % is 54.0%. What is the cost price for the sneakers? Retail $
$118.00
- What is the maximum cost a buyer can pay for a coat that will sell for $550 with a markup of 56.0%?
Retail $ $550.00
- You are the jewelry buyer for a large mass-market chain. For the holiday season, you are planning a boxed jewelry “Gifts to Go” promotion for $19.99. The markup for the promotion is planned at 43.0%. What is the maximum cost price that you will pay for the boxed jewelry?
Retail $ $19.99
- Given the following departmental markups and average retails per department, what is the maximum cost that the buyer can pay? Retail $ a. Sneakers, 54.4% markup; Retail price $89.00. $89.00
- Men’s ties, 65.7% markup; Retail price $38.00. Retail $ $38.00
- Boy’s apparel, 47.9% markup; Retail price $14.00 Retail $ $14.00
Calculate the retail price given the cost and the planned MU%
- An eye shadow compact costs $25.20, and the markup is 40.0%. What is the retail price of the compact? Cost $
$25.20
- A buyer will purchase sweaters at a cost of $37.85, and the planned MU % for the department is 62.0%. What is the minimum retail price for each sweater? What possible retail price for each sweater might be used if you were the buyer of a department store? What about an off-price retailer?
Cost $ $37.85
- If a graphic T-shirt costs $8.95 and the MU % is 53.4%, what is the retail price for the T-shirt? What would the pricing strategy be? Cost $
$8.95
Cumulative Markup Practice Problems
Description
- A buyer purchased 50 assorted leather briefcases that cost $79.50 each and establishes retail prices based on the style as follows: • 15 zip-top briefcases to retail for $175 each. • 20 messengers to retail for $150 each. • 15 backpacks to retail for $125 each. Find the cumulative markup percentage on this purchase.
Zip Top Messenger
Backpack
MU $ = MU $ =
MU % = MU % =
- The sweater buyer is buying 12,000 cashmere crew neck and 8,000 V- neck sweaters at a cost of $32.50. The buyer plans to retail the sweaters as follows: Crew neck to retail at $74.00; V-neck to retail at $79.00
- Calculate the IMU $ and IMU % for the crew neck. Quantity 12,000
MU $= Retail -Cost MU $= MU %= MU $/ Retail $
- Calculate the IMU $ and IMU % for the V- neck. 8,000
MU $= Retail -Cost MU $= MU %= MU $/ Retail $
- Calculate the CMU % for the total buy. Total Cost CMU $ =Total Retail -Total Cost CMU %=CMU $/Total Retail $
Cumulative Markup Application Practice Problems
- The jewelry buyer wants to spend $25,000 at retail. The department maintains a 76.7% markup. The buyer needs a minimum of 600 pairs of earrings to cover each branch with an adequate assortment.
- What should be the retail price per pair?
Retail Budget $25,000
- What should be the cost per pair? Retail $25.00
- For a monthly T-shirt buy, you will be spending $22,560 at retail. Orders for $9,980 at cost have been placed. The planned MU % is 51.5%. What is left in retail dollars for you to place? Cost
$9,980.00 Plan/Budget $22,560.00