Net sales (Actual)	2,000,000
Gross Cost of Merchandise Sold	800,000
Cash Discounts	120,000
Alt Costs	40,000

a. Maintained Markup $ _________________

b. Maintained Markup % _________________

c. Gross Margin $ __________________

d. Gross Margin % __________________

11. If Alterations and Cash Discounts are not applicable to the retailer, Maintained Margin and Gross Margin will be

a. The same

b. Gross Margin will be higher

c. Maintained Markup will be higher

d. None of the above

12. During the month of December, Sales were 500,000 and Markdowns were $42,500. What was the MD% for the month?

13. Markdowns for the month totaled 30%. If Net Sales during the month were 820,000 calculate the MD$.

14. Children's Shoe department took the following markdowns for the month of August

25 Pairs Canvas Tennis Shoes: From 18.00 to 9.00

30 Pairs of patent Leather Shoes: From 30.00 to 16.00

20 Pairs of Soccer Cleats: From 28.00 to 12.00

What were the total MD$ taken on this merchandise?

17. Retail reductions as we discussed occur due to which of the following causes?

a. Markdowns

b. All of the above

c. Shortages

d. Employee Discounts

18. A buyer purchased 2,500 T shirts for Father's day promotion. The buyer sold 1200 T's at the full price of $18.00 prior to the sale. The remaining ties were marked down to 25% off and all sold at that price.

1. What is the new selling price for the ties?
2. What were the MD$ from the original price to new reduced price?
3. What were the Total MD$ on all the discounted ties?
4. What were the Actual Net Sales for the whole program?
5. What was MD% on program?

Extra Credit. If Maintained Markup is 37% on sales of 1,300,000 and Cash Discounts are 8% and Alterations are 2% What is the Gross margin?