Question

For spring a buyer purchased 9,600 pants that will retail at $59.00. In the first week 210 units sold. Buyer then took POS markdown to $44.99 and sold 440 pcs in week-2. Calculate markdown% journalized.

Answer 1

To calculate the markdown percentage, subtract the reduced price from the original price, divide by the original price, and multiply by 100. For the pants reduced from $59.00 to $44.99, the markdown percentage is 23.73%.

Step-by-step explanation:

The question asks to calculate the markdown percentage on a product that was originally priced at $59.00 but then reduced to $44.99. To compute the markdown percentage, we use the formula:

Markdown Percentage = ((Original Price - Reduced Price) / Original Price) * 100

We substitute the given values:

Markdown Percentage = (($59.00 - $44.99) / $59.00) * 100

Markdown Percentage = ($14.01 / $59.00) * 100

Markdown Percentage = 0.2373 * 100

Markdown Percentage = 23.73%

The markdown percentage journalized is 23.73%.