A jewelry store purchased 100 fashion watches for $3000. If the store sold 50 watches at $60, 40 watches at $54, and the rest at $30, find the total markup, the markup percent on selling price, and the equivalent markup percent on cost.

Question

Quizplus · Accepted Answer

The store sold a total of 50+40=90 watches at a total revenue of 50*$60 + 40*$54 = $3000.

This means that the remaining 10 watches were sold at a total revenue of $3000 - $3000 = $0. Therefore, the average selling price for these 10 watches was $0/10 = $0.

The total cost of purchasing all 100 watches was $3000, so the average cost per watch was $3000/100 = $30.

Now we can calculate the markup and markup percentage:

Markup = Total revenue - Total cost = $3000 - $3000 = $0
Markup % on selling price = Markup / Total revenue * 100% = $0/$3000 * 100% = 0%
Equivalent markup % on cost = Markup / Total cost * 100% = $0/$3000 * 100% = 0%

Therefore, the total markup and the markup percentages are all 0, which means that there was neither a profit nor a loss on the sale of the watches.

Option D is the best choice as it correctly calculates the markup and markup percentages based on this analysis.

A Jewelry Store Purchased 100 Fashion Watches for $3000