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PLEASE SHOW WORK! Retail Math Initial Margin & Initial Margin Mix Homework A buyer has purchased 5 , 0 0 0 units of a new

PLEASE SHOW WORK! Retail Math
Initial Margin & Initial Margin Mix Homework
A buyer has purchased 5,000 units of a new product. The product costs $4.00 per unit. If the buyer
needs an initial margin of 35%, what should be the initial retail price on this product?
A local clothing store is carrying a new line of merchandise. Included in this new line is a coat which
costs $40 and retails for $80. What is the markup % on this coat?
A category manager has a budget for the upcoming year of $50,000 at cost. Their target IMU% is
60%.3 months into the buying season this category manager has spent $20,000 of their budget. The
IMU% on the purchased merchandise is 55%.
What IMU% is needed on the remaining merchandise (the merchandise they will purchase in the future)
in order to achieve the target IMU% for the entire category?
A locally owned home goods store has decided to test a new product line. The owner is unsure of
how well the products will sell, so has chosen to try only 4 SKU's. For this new product line to be
successful, the owner feels it needs to have an IMU% of at least 52%.
Projected cost and retail for the 4 SKU's is shown below. Based on these numbers, what would the
IMU% be for the entire line of merchandise? Will it achieve the targeted IMU%? If not, what would you
recommend the store owner do to fix the problem?
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