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# RETAIL PRICING AND REPRICING OF MERCHANDISE

RETAIL PRICING AND REPRICING OF MERCHANDISE (MARKUP)

1. 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

1. 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

1. 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

1. A man’s belt retails for \$74.00, and the markup is \$43.00. What is the cost price? Retail

\$74.00

1. 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

1. 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

1. 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 %

1. 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

1. 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

1. 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

1. 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
2. Men’s ties, 65.7% markup; Retail price \$38.00. Retail \$ \$38.00
3. Boy’s apparel, 47.9% markup; Retail price \$14.00 Retail \$ \$14.00

Calculate the retail price given the cost and the planned MU%

1. An eye shadow compact costs \$25.20, and the markup is 40.0%. What is the retail price of the compact? Cost \$

\$25.20

1. 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

1. 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

1. 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 % =

1. 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
2. Calculate the IMU \$ and IMU % for the crew neck. Quantity 12,000

MU \$= Retail -Cost MU \$= MU %= MU \$/ Retail \$

1. Calculate the IMU \$ and IMU % for the V- neck. 8,000

MU \$= Retail -Cost MU \$= MU %= MU \$/ Retail \$

1. Calculate the CMU % for the total buy. Total Cost CMU \$ =Total Retail -Total Cost CMU %=CMU \$/Total Retail \$

### Cumulative Markup Application Practice Problems

1. 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.
2. What should be the retail price per pair?

Retail Budget \$25,000

1. What should be the cost per pair? Retail \$25.00
2. 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

Last Updated on March 17, 2020

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