How does a store’s location affect the price it can charge? (1)
When should a retailer use the penetration pricing objective? (3)
If a retailer wants to use an above-market pricing policy, how should that retailer’s retailing mix be different from the competition? (4)
Compute the markup on selling price for an item that retails for $49.95 and costs $31.20. (10)
Complete the following (11):
Dress Shirt Sport Shirt Belt
Selling Price ($) 40.00 49.99 15.00
Cost ($) 23.00 25.35 6.50
Markup in Dollars ($)
Markup Percentage
on Cost (%)
Markup Percentage on
Selling Price (%)
A buyer tells you that she realized a markup of $50 on an interview suit for a college senior. You know that her markup is 25 percent of retail. What did the suit cost her (12)?
Which is more important to a retailer - initial or maintained markup? (14)
If the markup on cost is 76 percent, what is the markup on selling price? (15)
Somebody once said, “Buyers only need to take a markdown when they make mistakes. Therefore, good buyers should never have to take markdowns.” Do you agree with that statement? Explain your answer. (18)
\The buyer for men’s shirts has a price point of $45 and requires a markup of 45 percent. What would be the highest price he should pay for a shirt to sell at this price point? (21)