Men's Apparel Retailer Markup Analysis
Calculating Markup for a Jacket
A men's apparel retailer purchases items to sell in the store. Let's consider the scenario where the retailer buys a jacket for $60 and sells it for $120. We need to determine the dollar markup and the markup percentage on the selling price for this transaction.
1. Dollar Markup Calculation
Dollar markup is the difference between the selling price and the cost price of an item. In this case, the cost price of the jacket is $60 and the selling price is $120.
To calculate the dollar markup:
Dollar Markup = Selling Price - Cost Price
Substitute the values:
Dollar Markup = $120 - $60 = $60
Therefore, the dollar markup for the jacket is $60.
2. Markup Percentage on Selling Price Calculation
The markup percentage on selling price is the ratio of the dollar markup to the selling price, expressed as a percentage.
To calculate the markup percentage on selling price:
Markup Percentage on Selling Price = (Dollar Markup / Selling Price) * 100
Substitute the values:
Markup Percentage on Selling Price = ($60 / $120) * 100 = 50%
Therefore, the markup percentage on the selling price of the jacket is 50%.
- A men's apparel retailer purchases items to sell in the store. If the retailer purchases a jacket for $60 and sells it for $120, determine the following: 1. dollar markup 1. markup percentage on selling price The dollar markup for the jacket is $60 and the markup percentage on selling price is 50%.