In calculating a series of markups and markdowns, each calculation is based on the

The retailing equation states that the selling price is equal to the _______ plus the _______ . (8-1)

In business, expenses are separated into two major categories. The cost of _______ sold and _______ expenses. (8-1)

There are two ways of expressing markup as a percent: based on _______ and based on _______ _______ . (8-2)

Write the formula for calculating the selling price when markup is based on cost. (8-3)

To calculate cost, we divide the _______ price by 100% plus the percent markup on cost. (8-4)

The percent markup based on selling price is equal to the _______ divided by the selling price. (8-5)

When markup is based on selling price, the _______ price is the base and represents _______ percent. (8-6)

We use the formula for calculating _______ to find the most a retailer can pay for an item and still get the intended markup. (8-7)

To convert percent markup based on cost to percent markup based on selling price, we divide percent markup based on cost by 100% _______ the percent markup based on cost. (8-8)

To convert percent markup based on selling price to percent markup based on cost, we divide percent markup based on selling price by 100% _______ the percent markup based on selling price. (8-8)

A price reduction from the original selling price of merchandise is called a(n) _______. (8-9)

Write the formula for calculating the sale price after a markdown. (8-10)

In calculating a series of markups and markdowns, each calculation is based on the previous _______ price. (8-11)

Products that have a certain shelf life and then no value at all, such as fruit, vegetables, flowers, and dairy products, are known as _______ _______. (8-12)

Solve the following word problems. Round dollars to the nearest cent and percents to the nearest tenth of a percent. a. W hat is the original selling price of the guitar on sale at Music Mania if the $1,999.99 sale price represents 20% off? b. How much did the store pay for the guitar if the initial markup was 150% based on cost? c. What is the percent markup based on selling price? d. If next month the guitar is scheduled to be on sale for $1,599.99, what is the markdown percent?

The markup that a retail store actually realizes on the sale of its goods is called maintained markup. It is what is achieved after retail reductions (markdowns) have been subtracted from the initial markup. Maintained markup is one of the keys to profitability in retailing. It is the difference between the actual selling price and the cost and therefore has a direct effect on net profits. Maintained markup 5 Actual selling price 2 Cost ________________________ Actual selling price You are the buyer for Four Aces Menswear, a chain of mens clothing stores. For the spring season, you purchased a line of mens casual shirts with a manufacturers suggested retail price of $29.50. Your cost was $16.00 per shirt. a. What is the initial percent markup based on selling price? b. The shirts did not sell as expected at the regular price, so you marked them down to $21.99 and sold them out. What is the maintained markup on the shirts? c. When you complained to the manufacturers sales representative about having to take excessive markdowns in order to sell the merchandise, she offered a $2 rebate per shirt. What is your new maintained markup?