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APPLICATIONS [CALCULATED PERCENTAGES WILL VARY BY CALCULATOR DUE TO ROUNDING ERRORS CHOOSE THE CLOSEST PERCENTAGE ANSWER FOR YOUR RESPONSE.)

RETAIL SCENARIO A : Burgess, a clothing store, bought 100 sweaters for the sales season and sold 80% of them at full retail price, $50 per unit. As the season drew to a close, management marked down the remaining sweaters $20 each and sold them for $30 each.

1. (2 Pts) Given this, calculate the Markdown percentage (%) taken on Net Sales, that is, the Markdown % taken on the total 100 sweaters sold?

		8.69%
		66.70%
		40.00%
		133.30%
		10.00%

2.

However, for its promotional value with end-of-season bargain hunter, Burgess management calculates Mkd% Off Original Retail Price based on the Mkd$ Dollars per unit.

2. (2 Pts) Given this, what is the Mkd% advertised for those sweaters sold at $30 per unit?

		8.69%
		66.70%
		133.30%
		10.00%
		40.00%

Recently, Burgess management bought a shipment of long sleeve shirts at $12.00 each and wants to achieve a 30% markup at retail.

3. (2 Pts) What retail price must be set on the shirts?

		$22.86
		$ 9.23
		$57.14
		$17.14
		$40.00

Given the following information, Burges management needs to know its Open-to-Buy For May:

EOM Planned Retail Stock 325,000 Purchases On Order 22,000

Planned Markdowns for May 12,000 BOM Stock 250,000

Planned Purchases at Retail ? Planned Sales for May 90,000

4. ( 5 Pts) What is your Open-To-Buy Position?

		$133,000
		($16,000) Overstock Position
		$ 0.0
		$177,000
		$155,000

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