The knit department will be running an ad on short sleeve cotton tee shirts. The buyer estimates she will need 1,200 units for her ten stores. She must maintain the department markup goal of 52% . Her past selling indicates the following % of selling for each color:

White 30%

Black 20%

Red 15%

Navy 15%

Gree 10%

Pink 10%

Total 100%

She has noticed that white tee shirts sales have been dropping off , she would like to increase her sales in black and red . However , the cost is higher in the dark colors. Will she be able to maintain her department's plan markup of 52% if she changes her purchase to plan for 23% of her sales in black and 17% of her sales in red, lowering her white to 25% of sales ? She is going to Retail all colors at $20.00

What is the most she will be able to pay for the assorted colors and maintain her markup plan?

The same percent by color will be maintained.

White $9.00

Black $9.80

Asst. color ??

Plan for a purchase of 1,200 units with new sales plan percent by color :

1) units by color

2) calculate total cost dollars by color and department total

3) calculate total retail dollars by color and department total

4) calculate markup % by color

5) calculate markup % by total department