Question

Ace of Diamonds purchased 70 diamond bracelets at $235 each and the regular selling price was $345. The store sold 50.00% of them at the regular selling price. During a sale, it sold another 30 of them at a markdown of 15.00%. The remaining units were sold at an additional markdown of 10.00%. Determine the net rate of markup based on total cost.

Answer 1

The net rate of markup based on the total cost for Ace of Diamonds can be found by calculating the total cost, sales revenue at various markdowns, and then finding the percentage increase from cost to revenue which is 34.6%.

Step-by-step explanation:

The subject question involves finding the net rate of markup based on the total cost of diamond bracelets for Ace of Diamonds. First, we calculate the total cost of purchasing 70 diamond bracelets at $235 each. Then, we determine the revenue from selling 50% of them at the regular selling price of $345, another 30 at a 15% markdown, and the remaining at an additional 10% markdown. The net rate of markup based on the total cost is determined by subtracting the total cost from the total revenue and dividing the result by the total cost.

We start by calculating the total cost of 70 bracelets: 70 x $235 = $16,450. Next, we find the revenue from selling:

• 50% at $345 each: 35 x $345 = $12,075
• 30 at a 15% markdown ($345 - 15% of $345): 30 x ($345 - ($345 * 15%)) = $8,782.50
• The remaining 5 at a further 10% markdown: 5 x ($345 - ($345 * 25%)) = $1,293.75

Adding these up gives us the total revenue: $12,075 + $8,782.50 + $1,293.75 = $22,151.25. Finally, the net rate of markup is calculated as: ($22,151.25 - $16,450) / $16,450 = 0.346 or 34.6%.