Question

The men's tie buyer has net sales of $1,440,000, expenses of $504,000, and total reductions of $604,800. The buyer wants a profit of $86,400. What is the initial markup?

Answer 1

Answer: $1,195,200

Step-by-step explanation:

Net sales = $1,440,000

Expenses = $504,000

Reductions = $604,800.

We then calculate the initial mark up which will be the addition of the net sales, expenses and the reduction. This will be:

= $1,440,000 + $504,000 + $604,800

= $1,195,200