1. A departments maintained markup is 38 percent, reductions are $560, and net sales are $28,000. Whats the initial markup percentage?

2. Maintained markup is 39 percent, net sales are $52,000, and reductions are $2,500. What are gross margin in dollars and the initial markup as a percentage? Explain why initial markup is greater than maintained markup.

3. The cost of a product is $150, markup is 50 percent, and markdown is 30 percent. Whats the final selling price?

4. Manny Perez bought a tie for $9 and priced it to sell for $15. What was his markup on the tie?

5. Answer the following: (a) The Limited is planning a new line of leather jean jackets for fall. It plans to retail the jackets for $100. It is having the jackets produced in the Dominican Republic. Although The Limited does not own the factory, its product development and design costs are $400,000. The total cost of the jacket, including transportation to the stores, is $45. For this line to be successful, The Limited needs to make $900,000 profit. (A). What is its break-even point in units and dollars? (b) The buyer has just found out that The GAP, one of The Limited's major competitors, is bringing out a similar jacket that will retail for $90. If The Limited wishes to match The GAP's price, how many units will it have to sell? Expert Answer