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Help please!!! Im having so much trouble with these two problems. Thank you! In department and specialty store retailing, a common markup strategy is to

Help please!!! Im having so much trouble with these two problems. Thank you! image text in transcribed
image text in transcribed
In department and specialty store retailing, a common markup strategy is to double the cost of an item to arrive at the selling price. This strategy is known as keystoning the markup and is widely used in apparel, cosmetics, fashion accessories, shoes, and other categories of merchandise. The reasoning for the high amount of markup is that these stores have particularly high operating expenses. In addition, they have a continuing need to update fixtures and remodel stores to attract customers. You are the buyer in the women's shoe department of the Roma Grande Department Store. You normally keystone your markups on certain shoes and handbags. This amount of markup allows you enough gross margin so that you can lower prices when sales occur and still have a profitable department (a) If you are looking for a line of handbags that will retail for $180, what is the most you can pay for the bags (in $)? $ (b) At a women's wear trade show, you find a line of handbags that you like with a suggested retail price of $110. The vendor has offered you trade discounts of 25/20/7. Will this series of trade discounts allow you to keystone the handbags? -?, because after the trade discounts the cost of each handbag is $ (Challenge) The vendor tells you that the first two discounts, 25% and 20%, are fixed, but the 7% is negotiable. What is the minimum trade discount (as a %), rounded to a whole percent, that you should request in order to keystone the markup? % You are the manager of World Wide Athlete, a chain of six sporting goods shops in your area. The shops sell 10 racing bikes per week at a retail price of $679.99. Recently, you put the bikes on sale at $599.99. At the sale price, 12 bikes were sold during the one week sale. (a) What was your markdown percent on the bikes? (Round your answer to one decimal place.) 9 (b) What is the percent increase in number of bikes sold during the sale? % (c) How much more revenue (in %) would be earned in 6 months by permanently selling the bikes at the lower price rather than having a 1 week sale each month? (6 sale weeks in 26 weeks.) 5 more revenue (d) As manager of World Wide Athlete, would you recommend this permanent price reduction? Explain. (Just consider revenue, Ignore cost.) Yes, permanent markdown increases revenue significantly O No, permanent markdown decreases revenue significantly No, permanent markdown does not change revenue

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