4. A buyer for mens ties wants to have a maintained markup of 40%. The buyer forecasts that the reduction as a percent of sales will be 15%.
   1. What should the initial markup be?
   2. If the cost of the ties is $12 each, what would be the initial selling price?

5. A buyer for womens hosiery is planning to buy for merchandise to be sold during the summer season that will generate retail sales of $200,000. The buyer wants to have a maintained markup of 34% on retail for summer hosiery sales. Reductions will be very small and can be ignored. The buyer has already spent $53,250 for merchandise that will generate $75,450 at retail. What markup does the buyer need to have on the remainder of the planned purchases to realize the overall markup of 34%?