For a Spring Sale event, a buyer plans to purchase 250 floral print dresses to retail for $79.99 each. A 56% markup is needed on the total purchase. From one of the buyer’s best resources, 110 dresses were purchased that cost $37.50 each. The buyer knows, however, that the costs will have to be averaged on the balance of other purchases from alternate resources in order to achieve a 56% markup on the entire group. a. What must be the average cost per dress on the balance of the purchases if the buyer is to attain the planned markup percentage? b. What markup percentage did the buyer attain on the first purchase of 110 dresses? c. What markup percentage did the buyer have to get on the balance of the purchases to realize the overall needed markup?

For a Spring Sale event, a buyer plans to purchase 250 floral print dresses to retail for $79.99 each. A 56% markup is needed on the total purchase. From one of the buyer’s best resources, 110 dresses were purchased that cost $37.50 each. The buyer knows, however, that the costs will have to be averaged on the balance of other purchases from alternate resources in order to achieve a 56% markup on the entire group. a. What must be the average cost per dress on the balance of the purchases if the buyer is to attain the planned markup percentage? b. What markup percentage did the buyer attain on the first purchase of 110 dresses? c. What markup percentage did the buyer have to get on the balance of the purchases to realize the overall needed markup?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 3CE: Pietro expects to produce 50,000 units and sell 49,300 units. Beginning inventory of finished goods...

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