3. You are the buyer for a large retail chain. You need to calculate your gross margin. You have the following information available:

Purchases at retail $546,843

Purchases at cost 324,756

Markdowns 151,324

Employee discounts 33,456

Freight 4,521

Shortage 1,346

Cash discounts 5,678

Sales 359,818

Alterations 342

Senior citizen discount 899

What is the total gross margin?

4. Repeat exercise three; however, calculate the gross margin using percentages.