PART II

You operate a local business with two other partners. Your role is to work out the rate of markup and gross profit margin; as well as work with markdowns and taxes on your inventory.

1. Using your partners data from Part I, determine the rate of markup and the gross profit margin of Inventory Item B. If the gross profit margin on Inventory Item A is 9%, determine the rate of markup on Inventory Item A.

2. Taking the net price as the per unit cost, suppose Inventory Item A goes on sale for 7% less than the cost price. Determine the sale price of Inventory Item A. Also, 150 units of Inventory Item A are sold at the sale price. On each inventory item you must pay 5% GST to Revenue Canada. How much in total do you owe CRA?