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4. A buyer is negotiating a markdown goal with a supplier. The supplier will agree to pay portion of the markdowns for the season for
4. A buyer is negotiating a markdown goal with a supplier. The supplier will agree to pay portion of the markdowns for the season for items stocked at the retailer's stores needs to forecast the markdowns in order to begin negotiations. Forecast the season's markdown based on the following information: The buyer plans to purchase 10,000 units priced at $25 per unit A sell through of 40% is expected at regular price A first markdown of 25% will happen after 6 weeks of regular price sales In the past, goods have sold at a rate of about 5% per week at the first markdown After 4 weeks of sales at the first markdown, goods to be reduced to 50% off the original retail In the past, goods have sold at a rate of about 10% per week at the second markdown After 4 weeks of sales at the second markdown, goods will be reduced to 75% off for the final markdown
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