A buyer plans to purchase jackets at a 58% markup with a retail value of $18,500. If the buyer acquires 100 jackets at $54.75 each and retails them at $125 each, what markup percentage must now be obtained on the balance of the purchases in order to achieve the desired markup percentage?
Markup = Retail value x Markup%
= $18,500 x 58% / 100 = $10,730
Markup on 100 jackets = Retail price for each 100 jacket – 100 jacket cost x 100
= 125 – 54.75 x 100 = $7,025
Remaining Retail value = Retail price – Retail price for each 100-jacket x 100
= $18,500 – (125 x100) = $6,000
Remaining markup needed = Markup – Markup made on 100 jackets
= $10,730 – 7,025 = $3,705
Required percentage markup = Remaining markup needed / remaing retail value of jacket needed to be purchased
= 3,705 / 6,000 = 61.75%