The men’s outwear buyer, who needs a 51% average markup for a Columbus Day promotion, is planning to buy $9,500 worth of merchandise at a retail for October. To date, 100 motorcycle jackets costing $23.40 each have been purchased, with a plan to retail them at 48% markup. What markup percentage is needed on the balance of the purchase to attain the average markup percentage?
Total Markup = $9,500 x 51% = $4,845
Markup % = 100 x $23.40 x 48% = 1,123.20
Remaining markup = $4,845 – $1,123.20 = $3,721.80
Markup % = $3,721.80 / (9,500 – 2,340)
= $3,721.80 / 7,160 = 1.98%