Maintained markup is 39 percent, net sales are $52,000, alterations are $1,700, shrinkage is $500, markdowns are

Question:

Maintained markup is 39 percent, net sales are $52,000, alterations are $1,700, shrinkage is $500, markdowns are $5,000, employee discounts are $2,000, and cash discounts are 2 percent. What are gross margin in dollars and initial markup as a percentage? Explain why initial markup is greater than maintained markup.