Thread: Markups

Answers are provided. Please show your work so I can follow along with what you did. Thanks.

A store bought 10 dozen of a certain toy for $24.00 per dozen and it priced the toy to yield a markup of 50% based on selling price. After Christmas it had forty left over so it priced the remainded to give a markup of 50% based on cost. Assuming all sold at this markdown, find

(a)The regular selling price [$48.00/dozen]
(b)the after Christmas price [$36.00/dozen]
(c) the effective markup rate based on sales [45.45%]

Answer to c.

40 x 12 = 480
80 x 24 = 1920

480 + 1920 = 2400

40 x 36 +1440
80 x 48 = 3840

1140 + 3840 = 5200

2400 / 5200 = .4545 x 100 = 45.45%