From the following information answer the following 3 questions that are each worth 3 points Reamers Shop Boutiques has recently purchased 100 sandals at a cost of $42 per sandal. It has been determined that their projected gross profit margin needs to be 37% and they are anticipating a 3% shrinkage rate. These sandals are considered very high fashion so Reamers intends to price them at an initial price of $105.

1. From the information above, calculate the amount of markdown allowance available to sell these sandals and still adhere to their markon requirement.

$6,300

$2,800

$3,500

$10,500

can not be calculated with information provided above

2. From the information provided above calculate the initial retail markup percentage that Reamers used to determine the initial retail price of the sandals.

60%

40%

150%

50%

can not be determined with information provided

3. Reamers decides to drop the price from $105 to $75 per sandal, calculate the markdown percentage. (round off if necessary)

28.5%

71.5%

31.5%

40%

can not be determined with this information