Question

A G H 16. 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 a. Calculate the IMU $ and IMU % for the crew neck Quantity 12.000 Unit Cost $32.50 Total Cost Unt Retail $7400 Total Retail 5 MU $Retail Cost 3 MUS MUMU S Retail S or 8.000 $32.50 $7900 or Calculate the IMU S and IMU % for the Vneck o 1 2 MU S Retail Cost 3 MUS 4 MUS MUS/ Retail 55 6 c. Calculate the CMU % for the total buy 37 CMU S Total Retail-Total Cost 58 CMU%CMU S/Total Retail $ Total Cost Total Retail CMUS CMU 30 Cumulative Markup Application Practice Problems 91 17. 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 32 assortment

Answer 1

Question a-

Explanation-

Given - Units purchased of crew neck sweaters= 12,000

Cost of a unit = $ 32.50

Unit Retail = $ 74

Total Cost of Crew Neck sweaters = Number of units purchased * Cost of a unit

Therefore,

Total Cost = 12,000* 32.50

= $ 390,000

Retail Price of crew neck sweater = Number of units purchased  * Unit Retail

Retail Price  = 12,000 * 74

= $ 888,000

Hence, IMU $ = Retail Price - Cost

= 888,000 - 390,000

= $ 498,000

​​​​​​​ IMU % = IMU $ / Retail Price

​​​​​​​ = 498,000 / 888,000

=0.56%

Question b -

​​​​​​​Explanation-

Given- Units purchased of V neck sweater = 8,000

Cost of a unit = $ 32.50

Unit Retail = $ 79

Total cost of V neck sweaters = Number of Units purchased * cost of a unit

Cost of V neck sweaters = 8,000 * 32.50

= $ 260,000

Retail Price = Number of Units purchased * Unit Retail

​​​​​​ = 8,000 * 79

= $ 632,000

Hence, IMU $ = Retail Price - Cost

   = 632,0000 - 260,000

   = 372,000

IMU % = IMU $ / Retail Price

= 372,000 / 632,000

= 0.589 %

Answer c-

Total Cost of both kind of sweaters = Cost of crew neck sweaters + Cost of V neck sweaters

= 390,000 + 260,000

=$ 650,000

Total Retail Price of both kind of sweaters = Retail Price of Crew neck sweater + Retail Price of V neck sweater

= 888,000 + 632,000

= $ 1,520,000

CMU $ = Total Retail - Total Cost

= 1,520,000 - 650,000

= 870,000

CMU% = CMU $ / Total Retail

​​​​​​ = 870,000 / 1,520,000

= 0.47 %