Deck 6: Retail Pricing for Profit

Question 1

The designer suit department received 220 suits for the fall season. At the end of the month 150 suits were on hand. What was the sell-through percent of the suits?

Answer 1

Sell through percentage is used to measure success of selling of merchandise by analyzing sell through reports indicating how much in units or percent, of product, or collection of goods in inventory has been sold.
In other words, Sell-through states the rate at which an item is sold over a specific period of time. Following formula is used to compute sell through percentage:
In this case, the department originally received 220 suits and at the end of the month 150 suits were on hand. To compute sell-through percent, Substitute the values in the above formula as shown below:
Therefore, sell through percentage of suits are computed as
.

Question 2

A buyer for a large department store has 999 skirts on hand at the beginning of the month. On Monday she reviews her sell-through report on skirts and sees a 20.02% sell-through. How many units were sold?

Answer 2

Sell through percentage is used to measure success of selling of merchandise by analyzing sell through reports indicating how much in units or percent, of product, or collection of goods in inventory has been sold.
In other words, Sell-through states the rate at which an item is sold over a specific period of time. Following formula is used to compute sell through percentage:
Or,
In this case, the department has 999 skirts at the beginning of the month and on Monday buyer sees sell through percentage as 20.02%. Now to compute No of skirts sold, Substitute the values in the above formula as shown below:
Thus, the total numbers of skirts sold are
.

Question 3

Using the information below calculate the sell-through percent for each item and the total for the department.

Answer 3

Sell through percentage is used to measure success of selling of merchandise by analyzing sell through reports indicating how much in units or percent, of product, or collection of goods in inventory has been sold.
In other words, Sell-through states the rate at which an item is sold over a specific period of time. Following formula is used to compute sell through percentage:
Or,
In this case for Style 5467, total received units are 750 and number of units sold is 455.To determine sell through percentage, substitute these values in above formula as given below:
Hence, the sell-through percentage for the product Style 5467 is
.
In this case for Style 5470, total received units are 750 and number of units sold is 329.To determine sell through percentage, substitute these values in above formula as given below:
Hence, the sell-through percentage for the product Style 5470 is
.
In this case for whole department, total received units are 1,500 and number of units sold is 784.To determine sell through percentage, substitute these values in above formula as given below:
Hence, the sell-through percentage for the total department is
.
Therefore, sell through percentage can be described as:
Sell through percentage, is higher for style-5467 compared to Style -5470, and overall department's sell through percentage is 52.27%.

Question 4

During July, sales for the junior sportswear department were $625,000 and markdowns totaled $168,750. What was the markdown percent for July?

Question 5

The men's department had sales of $60,000 for December. During the month, the buyer reduced prices of 38 suits from $695 to $445 and that of 20 suits from $550 to $287. What was the markdown percent for the month?

Question 6

The shoe department had gross sales of $325,000 and customer returns of $24,000. Determine the markdown percent if the dollar markdowns totaled $57,190.

Question 7

Determine the markdown percent for July if sales were $32,000 and the buyer for home furnishings took the following markdowns:

Question 8

During October, the markdowns for a department were $13,650, or 32% for the month. Determine the net sales during the month.

Question 9

The juniors' department had net sales of $580,000 for October. If markdowns were 39.5%, determine the dollar amount of the markdowns.

Question 10

A sportswear buyer reduced prices of 25 belts from $24 to $18 for a four-day sale. Ten of the belts were sold. After the sale, the remaining belts were priced at $22 each. Calculate the markdown cancellation.

Question 11

During May, a shop had a net markdown of $940. If total markdowns were $1,890, determine the markdown cancellation.

Question 12

A buyer received 48 skirts retailing for $55 each. For a moonlight madness sale, the price of these skirts was reduced to $40. During the sale, 28 skirts were sold. After the sale was over, the remaining 20 skirts were returned to their original price. All of these skirts were sold for $55. Find the markdown cancellation, net markdown, and net markdown percent.

Question 13

A buyer for accessories received 144 silk scarves priced at $38 each. For a two-day sale, the prices for the remaining 120 scarves were reduced to $25. Of this group, 55 scarves were sold. After the sale, the buyer marked the remaining scarves back up to $30, and all of these scarves were sold for $30 each. Calculate the net markdown percent.

Question 14

A buyer had 64 sweatshirts in stock at a retail price of $36 each. He marked them down to $29 for a five-day sale. After the sale, 38 sweatshirts remained. The buyer marked the remaining sweatshirts to $32. The remainder of sweatshirts sold at this price. Determine the markdown cancellation, net markdown, and net markdown percent.

Question 15

A giftware buyer received 36 crystal clocks that retailed for $79 each. Five clocks sold at that price before a special sales event. The remaining 31 clocks were marked down to $58. Nineteen of the clocks were sold during the sale, and the remaining clocks were marked to the original $79 price. The remaining clocks were eventually sold at full price. Calculate the net markdown percent.

Question 16

Margo was delighted at the sales of the line of dresses she recently purchased. Because the merchandise was selling so fast, she quickly arranged to receive a second shipment of 720 dresses from the same vendor. When the merchandise arrived, the existing dress inventory at all of her stores was down to only 120 units priced at $40.00. Because Margo's cost on the second shipment was slightly higher, she had to price the new arrivals at $44 and decided it would be best to reprice the already existing dresses to the same $44 price point. Customers continued to like the style of dresses so much that all of the units sold at full price. Calculate the additional markup percent on the remainder of the first shipment.

Question 17

Golfer's Delight was to hold a summer spectacular event during which a celebrity golfer would be autographing golf bags for anyone purchasing the Pro Spirit line of clubs. To prepare for the event, the buyer purchased 15 additional sets of clubs to be priced at $400. There were already 10 sets of the clubs in stock but they were repriced from $350 to $400 for consistency. The event was very successful and all of the clubs sold. What was the additional markup percent earned on the clubs already in inventory? What was the total net sales on all clubs during the event?

Question 18

As a member of the Customer Loyalty Club, Rudi received a series of discounts. If his purchases total $100 or more, his discount is 10%; if they total $200 or more, his discount is 20%; and if they total $300 or more, his discount is 30%. Rudi buys a pair of slacks at $69.00, two shirts at $34.00 each, a jacket for $47.00, and a belt for $28. Tax must be applied and is 8.5%. How much will Rudi pay for his purchases?

Question 19

Alma, a sales associate, receives a 20% employee discount. Because she was the top sales associate of the month, Alma was given an additional 10% discount for the month of March. During March, Alma purchased a pair of running shoes for $89.50, a running suit for $129.99, two pairs of socks at $4.00 each, and a T-shirt for $21.50. What was the dollar amount of Alma's purchases, including a 7.5% sales tax?

Question 20

In a certain store, on Tuesdays customers over 55 years of age receive a 20% discount on all apparel and a 15% discount on all housewares and home accessories. Tina purchases six place mats at $6.50 each, six napkins at $4.00 each, a skirt for $42.00, and a knit top for $31.00. A sales tax of 6.5% is charged on all nonapparel items. Apparel items individually priced under $500 are tax exempt. How much is Tina's total bill? (Tina is 60 years old.)

Question 21

Permanent vs. Point-of-Sale Markdowns
Judi Toerge, MFA.
Academy of Art University
Mercedes is the buyer for sweaters for a five-store specialty retailer in the southern United States. The store traditionally holds two sales per year, one in fall and one in spring, during which merchandise is promotionally priced for two weeks, either as a permanent markdown or as a POS markdown. While Mercedes does not buy into her markdowns (i.e., buy merchandise that she anticipates will be marked down), the store does encourage each department to have a strong representation of markdowns on the floor during the first week of the sale. This is the vehicle by which each department remains clean and current. Mercedes's assortment, unlike that of her contemporary buyers in Collections, is item driven, so her range of styles is fewer, with more units being purchased to allow her to obtain a better gross margin because of lower costs.
This year, she has a total of six SKUs that will be involved in the fall semiannual sale. Mercedes's new merchandise manager is encouraging buyers to use a different approach in regard to the pricing strategy. Whereas in previous sales markdowns were taken permanently, Mercedes's merchandise manager is suggesting the strategy should become more aggressive with markdowns taken at the register or POS. Mercedes's goal is to minimize her markdowns, maximize her sales, attain a 100% sell-through, and achieve a 60% maintained markup. She is not convinced that her sell-throughs will be sufficient if she takes the markdowns at the POS level, as her customer is considered to be value/quality driven with a high degree of loyalty to the store. Therefore, Mercedes decides to continue using permanent markdowns by marking the merchandise to 30% off, and subsequently to 50%, and then 70% off for the last three days. Her assumption is that at the end of the sale all units will be purchased.
The following spreadsheet shows sales at full price and anticipated sales, using the 30%, 50%, and 70% markdown strategy.

Calculate total sales with this strategy.

Question 22

Permanent vs. Point-of-Sale Markdowns
Judi Toerge, MFA.
Academy of Art University
Mercedes is the buyer for sweaters for a five-store specialty retailer in the southern United States. The store traditionally holds two sales per year, one in fall and one in spring, during which merchandise is promotionally priced for two weeks, either as a permanent markdown or as a POS markdown. While Mercedes does not buy into her markdowns (i.e., buy merchandise that she anticipates will be marked down), the store does encourage each department to have a strong representation of markdowns on the floor during the first week of the sale. This is the vehicle by which each department remains clean and current. Mercedes's assortment, unlike that of her contemporary buyers in Collections, is item driven, so her range of styles is fewer, with more units being purchased to allow her to obtain a better gross margin because of lower costs.
This year, she has a total of six SKUs that will be involved in the fall semiannual sale. Mercedes's new merchandise manager is encouraging buyers to use a different approach in regard to the pricing strategy. Whereas in previous sales markdowns were taken permanently, Mercedes's merchandise manager is suggesting the strategy should become more aggressive with markdowns taken at the register or POS. Mercedes's goal is to minimize her markdowns, maximize her sales, attain a 100% sell-through, and achieve a 60% maintained markup. She is not convinced that her sell-throughs will be sufficient if she takes the markdowns at the POS level, as her customer is considered to be value/quality driven with a high degree of loyalty to the store. Therefore, Mercedes decides to continue using permanent markdowns by marking the merchandise to 30% off, and subsequently to 50%, and then 70% off for the last three days. Her assumption is that at the end of the sale all units will be purchased.
The following spreadsheet shows sales at full price and anticipated sales, using the 30%, 50%, and 70% markdown strategy.

Calculate total markdown dollars with this strategy.

Question 23

Permanent vs. Point-of-Sale Markdowns
Judi Toerge, MFA.
Academy of Art University
Mercedes is the buyer for sweaters for a five-store specialty retailer in the southern United States. The store traditionally holds two sales per year, one in fall and one in spring, during which merchandise is promotionally priced for two weeks, either as a permanent markdown or as a POS markdown. While Mercedes does not buy into her markdowns (i.e., buy merchandise that she anticipates will be marked down), the store does encourage each department to have a strong representation of markdowns on the floor during the first week of the sale. This is the vehicle by which each department remains clean and current. Mercedes's assortment, unlike that of her contemporary buyers in Collections, is item driven, so her range of styles is fewer, with more units being purchased to allow her to obtain a better gross margin because of lower costs.
This year, she has a total of six SKUs that will be involved in the fall semiannual sale. Mercedes's new merchandise manager is encouraging buyers to use a different approach in regard to the pricing strategy. Whereas in previous sales markdowns were taken permanently, Mercedes's merchandise manager is suggesting the strategy should become more aggressive with markdowns taken at the register or POS. Mercedes's goal is to minimize her markdowns, maximize her sales, attain a 100% sell-through, and achieve a 60% maintained markup. She is not convinced that her sell-throughs will be sufficient if she takes the markdowns at the POS level, as her customer is considered to be value/quality driven with a high degree of loyalty to the store. Therefore, Mercedes decides to continue using permanent markdowns by marking the merchandise to 30% off, and subsequently to 50%, and then 70% off for the last three days. Her assumption is that at the end of the sale all units will be purchased.
The following spreadsheet shows sales at full price and anticipated sales, using the 30%, 50%, and 70% markdown strategy.

Calculate markdown % and maintained markup %.

Question 24

Permanent vs. Point-of-Sale Markdowns
Judi Toerge, MFA.
Academy of Art University
Mercedes is the buyer for sweaters for a five-store specialty retailer in the southern United States. The store traditionally holds two sales per year, one in fall and one in spring, during which merchandise is promotionally priced for two weeks, either as a permanent markdown or as a POS markdown. While Mercedes does not buy into her markdowns (i.e., buy merchandise that she anticipates will be marked down), the store does encourage each department to have a strong representation of markdowns on the floor during the first week of the sale. This is the vehicle by which each department remains clean and current. Mercedes's assortment, unlike that of her contemporary buyers in Collections, is item driven, so her range of styles is fewer, with more units being purchased to allow her to obtain a better gross margin because of lower costs.
This year, she has a total of six SKUs that will be involved in the fall semiannual sale. Mercedes's new merchandise manager is encouraging buyers to use a different approach in regard to the pricing strategy. Whereas in previous sales markdowns were taken permanently, Mercedes's merchandise manager is suggesting the strategy should become more aggressive with markdowns taken at the register or POS. Mercedes's goal is to minimize her markdowns, maximize her sales, attain a 100% sell-through, and achieve a 60% maintained markup. She is not convinced that her sell-throughs will be sufficient if she takes the markdowns at the POS level, as her customer is considered to be value/quality driven with a high degree of loyalty to the store. Therefore, Mercedes decides to continue using permanent markdowns by marking the merchandise to 30% off, and subsequently to 50%, and then 70% off for the last three days. Her assumption is that at the end of the sale all units will be purchased.
The following spreadsheet shows sales at full price and anticipated sales, using the 30%, 50%, and 70% markdown strategy.

What other strategies could Mercedes have considered that would appeal to her core customer?

Question 25

Twist of Fate
Laree Waltemyer
The Art Institute of York, Pennsylvania
Mod Girl had been a vendor in the junior department for Norman's department store for over six years. In this time, the junior dress buyer, Sharon Wayne, had built a good relationship with her sales representative, Loren. They worked well together and communicated openly about the successes and problem areas they had in doing business with each other. Sharon and the other junior department buyers were told by their Divisional Merchandise Manager (DMM) that they had just been approved to put together a spring booklet showcasing their merchandise. Sharon instantly thought of Mod Girl as one of her choices and knew just what dress she wanted to include; a lilac silk screened short dress with a sheer overlay. Due to the spring trend forecasts and early selling Sharon and her vendors already had on styles and colors, she knew this dress would be a success. With her DMM's approval, she increased her outstanding order to 1,350 dresses that cost $13.50 each and retailed for $29.99 each, that would be delivered right before the drop date of the booklet to all 75 stores. Now all she had to do was wait for the dresses to arrive in stores and the booklet be delivered to homes.
A few weeks later it was time and Sharon couldn't wait to see the selling of her featured dresses; especially Mod Girl's. The first week, eight lilac dresses were sold, or only 0.6% of the dresses. Sharon quickly was on the computer making sure the dresses actually made it to all of the stores in time for the booklet. Fortunately they did, but it didn't help her figure out why the lilac dresses weren't selling as well as she, and Loren, thought they would. Sharon decided to wait one more week to see if it was a style that just needed a little more time to take off. Much to her dismay, the second week was even worse; -3 dresses were sold, meaning that there were 3 more dresses returned than were sold. Sharon couldn't figure out why they weren't selling. The other styles in the booklet were doing very well, with 5-10% sold each of the two weeks. Sharon knew she had to do some investigating on her own to find out why the sales were so poor. First she called Loren to see if anyone else was reporting problems with the dress. Loren told Sharon that he hadn't received any other calls, but that she was one of the first stores to get the dress. Next, Sharon called a few of her stores and asked them to review circumstances surrounding the sale of the lilac dress?Where was it placed on the floor? How was it merchandised? What signage was used? How knowledgeable were the sales associates regarding the product? Was any additional product information needed to help sell the dress? Sharon also wanted to see if they had any complaints or comments from customers. Again the answer was no. Sharon wasn't giving up until she figured the "mystery" out. She went to one of the other buyers, Audrey, who was a friend of hers and who luckily for Sharon had a junior figure. Sharon asked Audrey if she would try on the dress for her to see how it fits and what size she was. Sharon then went to the store closest to her corporate headquarters and transferred a dress to take with her. When she arrived back at corporate she had Audrey try on the dress. The instant Audrey had the dress on, Sharon could see and Audrey could feel the problem. The overlay was not sewn on to match up with the silk screen dress and it twisted the fabric and print around the body. It would not lay flat and was very uncomfortable to wear. Sharon then began calling other stores to have them check for the same problem. Unfortunately, the same problem was found at all of the locations she had called. Sharon knew there was no way she could sell this defective dress. She quickly sent out an e-mail for all stores to pull the dress off of the selling floor and to wait for further directions.
When Sharon called Loren, Loren was very apologetic to her. He knew this was a larger buy for Sharon and that she had advertised it in a rather expensive promotional piece. Sharon decided on three different actions that would be acceptable to her to help with the problem. Sharon's first proposal was that Mod Girl take back all of the unsold merchandise because it was unsalable. The second choice was to have them pay to have the dresses marked down 75%. Hopefully at this price, Sharon could get rid of a bunch of them. The last option was to pay to have the dresses marked down 50% and for Sharon to get a $9,000 credit for her next order with Mod Girl. Loren went to the owner of his company and described the situation and Sharon's proposed actions for them to take. When Loren called Sharon back, he regrettably told Sharon that the owner of the company said that they won't take any action and Sharon has to figure out on her own what to do with the damaged dresses because she owned them. Loren apologized and said it was out of his hands. Sharon couldn't believe it?that they would not stand behind their merchandise and take responsibility for a defective dress they sold her. She didn't have money in her markdown budget to take care of the dresses on her own and she didn't want the dresses hurting the department's and store's image so she called Loren with one final proposal. Mod Girl could either choose one of the three previous options to rectify the situation, or Sharon would cancel all outstanding orders with them ($48,000 at cost) and end their relationship entirely. Sharon couldn't believe that it had to come to this, but she was going to stand her ground; either Mod Girl steps up to the plate and right their wrong, or their partnership was over.
How much would it cost Mod Girl (at retail) to return the remaining unsold dresses?

Question 26

Twist of Fate
Laree Waltemyer
The Art Institute of York, Pennsylvania
Mod Girl had been a vendor in the junior department for Norman's department store for over six years. In this time, the junior dress buyer, Sharon Wayne, had built a good relationship with her sales representative, Loren. They worked well together and communicated openly about the successes and problem areas they had in doing business with each other. Sharon and the other junior department buyers were told by their Divisional Merchandise Manager (DMM) that they had just been approved to put together a spring booklet showcasing their merchandise. Sharon instantly thought of Mod Girl as one of her choices and knew just what dress she wanted to include; a lilac silk screened short dress with a sheer overlay. Due to the spring trend forecasts and early selling Sharon and her vendors already had on styles and colors, she knew this dress would be a success. With her DMM's approval, she increased her outstanding order to 1,350 dresses that cost $13.50 each and retailed for $29.99 each, that would be delivered right before the drop date of the booklet to all 75 stores. Now all she had to do was wait for the dresses to arrive in stores and the booklet be delivered to homes.
A few weeks later it was time and Sharon couldn't wait to see the selling of her featured dresses; especially Mod Girl's. The first week, eight lilac dresses were sold, or only 0.6% of the dresses. Sharon quickly was on the computer making sure the dresses actually made it to all of the stores in time for the booklet. Fortunately they did, but it didn't help her figure out why the lilac dresses weren't selling as well as she, and Loren, thought they would. Sharon decided to wait one more week to see if it was a style that just needed a little more time to take off. Much to her dismay, the second week was even worse; -3 dresses were sold, meaning that there were 3 more dresses returned than were sold. Sharon couldn't figure out why they weren't selling. The other styles in the booklet were doing very well, with 5-10% sold each of the two weeks. Sharon knew she had to do some investigating on her own to find out why the sales were so poor. First she called Loren to see if anyone else was reporting problems with the dress. Loren told Sharon that he hadn't received any other calls, but that she was one of the first stores to get the dress. Next, Sharon called a few of her stores and asked them to review circumstances surrounding the sale of the lilac dress?Where was it placed on the floor? How was it merchandised? What signage was used? How knowledgeable were the sales associates regarding the product? Was any additional product information needed to help sell the dress? Sharon also wanted to see if they had any complaints or comments from customers. Again the answer was no. Sharon wasn't giving up until she figured the "mystery" out. She went to one of the other buyers, Audrey, who was a friend of hers and who luckily for Sharon had a junior figure. Sharon asked Audrey if she would try on the dress for her to see how it fits and what size she was. Sharon then went to the store closest to her corporate headquarters and transferred a dress to take with her. When she arrived back at corporate she had Audrey try on the dress. The instant Audrey had the dress on, Sharon could see and Audrey could feel the problem. The overlay was not sewn on to match up with the silk screen dress and it twisted the fabric and print around the body. It would not lay flat and was very uncomfortable to wear. Sharon then began calling other stores to have them check for the same problem. Unfortunately, the same problem was found at all of the locations she had called. Sharon knew there was no way she could sell this defective dress. She quickly sent out an e-mail for all stores to pull the dress off of the selling floor and to wait for further directions.
When Sharon called Loren, Loren was very apologetic to her. He knew this was a larger buy for Sharon and that she had advertised it in a rather expensive promotional piece. Sharon decided on three different actions that would be acceptable to her to help with the problem. Sharon's first proposal was that Mod Girl take back all of the unsold merchandise because it was unsalable. The second choice was to have them pay to have the dresses marked down 75%. Hopefully at this price, Sharon could get rid of a bunch of them. The last option was to pay to have the dresses marked down 50% and for Sharon to get a $9,000 credit for her next order with Mod Girl. Loren went to the owner of his company and described the situation and Sharon's proposed actions for them to take. When Loren called Sharon back, he regrettably told Sharon that the owner of the company said that they won't take any action and Sharon has to figure out on her own what to do with the damaged dresses because she owned them. Loren apologized and said it was out of his hands. Sharon couldn't believe it?that they would not stand behind their merchandise and take responsibility for a defective dress they sold her. She didn't have money in her markdown budget to take care of the dresses on her own and she didn't want the dresses hurting the department's and store's image so she called Loren with one final proposal. Mod Girl could either choose one of the three previous options to rectify the situation, or Sharon would cancel all outstanding orders with them ($48,000 at cost) and end their relationship entirely. Sharon couldn't believe that it had to come to this, but she was going to stand her ground; either Mod Girl steps up to the plate and right their wrong, or their partnership was over.
What are the amounts Mod Girl would have to pay (a) to have the remaining dresses marked down 75% and (b) to have them marked down 50% with the future order credit?

Question 27

Twist of Fate
Laree Waltemyer
The Art Institute of York, Pennsylvania
Mod Girl had been a vendor in the junior department for Norman's department store for over six years. In this time, the junior dress buyer, Sharon Wayne, had built a good relationship with her sales representative, Loren. They worked well together and communicated openly about the successes and problem areas they had in doing business with each other. Sharon and the other junior department buyers were told by their Divisional Merchandise Manager (DMM) that they had just been approved to put together a spring booklet showcasing their merchandise. Sharon instantly thought of Mod Girl as one of her choices and knew just what dress she wanted to include; a lilac silk screened short dress with a sheer overlay. Due to the spring trend forecasts and early selling Sharon and her vendors already had on styles and colors, she knew this dress would be a success. With her DMM's approval, she increased her outstanding order to 1,350 dresses that cost $13.50 each and retailed for $29.99 each, that would be delivered right before the drop date of the booklet to all 75 stores. Now all she had to do was wait for the dresses to arrive in stores and the booklet be delivered to homes.
A few weeks later it was time and Sharon couldn't wait to see the selling of her featured dresses; especially Mod Girl's. The first week, eight lilac dresses were sold, or only 0.6% of the dresses. Sharon quickly was on the computer making sure the dresses actually made it to all of the stores in time for the booklet. Fortunately they did, but it didn't help her figure out why the lilac dresses weren't selling as well as she, and Loren, thought they would. Sharon decided to wait one more week to see if it was a style that just needed a little more time to take off. Much to her dismay, the second week was even worse; -3 dresses were sold, meaning that there were 3 more dresses returned than were sold. Sharon couldn't figure out why they weren't selling. The other styles in the booklet were doing very well, with 5-10% sold each of the two weeks. Sharon knew she had to do some investigating on her own to find out why the sales were so poor. First she called Loren to see if anyone else was reporting problems with the dress. Loren told Sharon that he hadn't received any other calls, but that she was one of the first stores to get the dress. Next, Sharon called a few of her stores and asked them to review circumstances surrounding the sale of the lilac dress?Where was it placed on the floor? How was it merchandised? What signage was used? How knowledgeable were the sales associates regarding the product? Was any additional product information needed to help sell the dress? Sharon also wanted to see if they had any complaints or comments from customers. Again the answer was no. Sharon wasn't giving up until she figured the "mystery" out. She went to one of the other buyers, Audrey, who was a friend of hers and who luckily for Sharon had a junior figure. Sharon asked Audrey if she would try on the dress for her to see how it fits and what size she was. Sharon then went to the store closest to her corporate headquarters and transferred a dress to take with her. When she arrived back at corporate she had Audrey try on the dress. The instant Audrey had the dress on, Sharon could see and Audrey could feel the problem. The overlay was not sewn on to match up with the silk screen dress and it twisted the fabric and print around the body. It would not lay flat and was very uncomfortable to wear. Sharon then began calling other stores to have them check for the same problem. Unfortunately, the same problem was found at all of the locations she had called. Sharon knew there was no way she could sell this defective dress. She quickly sent out an e-mail for all stores to pull the dress off of the selling floor and to wait for further directions.
When Sharon called Loren, Loren was very apologetic to her. He knew this was a larger buy for Sharon and that she had advertised it in a rather expensive promotional piece. Sharon decided on three different actions that would be acceptable to her to help with the problem. Sharon's first proposal was that Mod Girl take back all of the unsold merchandise because it was unsalable. The second choice was to have them pay to have the dresses marked down 75%. Hopefully at this price, Sharon could get rid of a bunch of them. The last option was to pay to have the dresses marked down 50% and for Sharon to get a $9,000 credit for her next order with Mod Girl. Loren went to the owner of his company and described the situation and Sharon's proposed actions for them to take. When Loren called Sharon back, he regrettably told Sharon that the owner of the company said that they won't take any action and Sharon has to figure out on her own what to do with the damaged dresses because she owned them. Loren apologized and said it was out of his hands. Sharon couldn't believe it?that they would not stand behind their merchandise and take responsibility for a defective dress they sold her. She didn't have money in her markdown budget to take care of the dresses on her own and she didn't want the dresses hurting the department's and store's image so she called Loren with one final proposal. Mod Girl could either choose one of the three previous options to rectify the situation, or Sharon would cancel all outstanding orders with them ($48,000 at cost) and end their relationship entirely. Sharon couldn't believe that it had to come to this, but she was going to stand her ground; either Mod Girl steps up to the plate and right their wrong, or their partnership was over.
Which option would be in the best interest of Sharon and her department and why?

Question 28

Twist of Fate
Laree Waltemyer
The Art Institute of York, Pennsylvania
Mod Girl had been a vendor in the junior department for Norman's department store for over six years. In this time, the junior dress buyer, Sharon Wayne, had built a good relationship with her sales representative, Loren. They worked well together and communicated openly about the successes and problem areas they had in doing business with each other. Sharon and the other junior department buyers were told by their Divisional Merchandise Manager (DMM) that they had just been approved to put together a spring booklet showcasing their merchandise. Sharon instantly thought of Mod Girl as one of her choices and knew just what dress she wanted to include; a lilac silk screened short dress with a sheer overlay. Due to the spring trend forecasts and early selling Sharon and her vendors already had on styles and colors, she knew this dress would be a success. With her DMM's approval, she increased her outstanding order to 1,350 dresses that cost $13.50 each and retailed for $29.99 each, that would be delivered right before the drop date of the booklet to all 75 stores. Now all she had to do was wait for the dresses to arrive in stores and the booklet be delivered to homes.
A few weeks later it was time and Sharon couldn't wait to see the selling of her featured dresses; especially Mod Girl's. The first week, eight lilac dresses were sold, or only 0.6% of the dresses. Sharon quickly was on the computer making sure the dresses actually made it to all of the stores in time for the booklet. Fortunately they did, but it didn't help her figure out why the lilac dresses weren't selling as well as she, and Loren, thought they would. Sharon decided to wait one more week to see if it was a style that just needed a little more time to take off. Much to her dismay, the second week was even worse; -3 dresses were sold, meaning that there were 3 more dresses returned than were sold. Sharon couldn't figure out why they weren't selling. The other styles in the booklet were doing very well, with 5-10% sold each of the two weeks. Sharon knew she had to do some investigating on her own to find out why the sales were so poor. First she called Loren to see if anyone else was reporting problems with the dress. Loren told Sharon that he hadn't received any other calls, but that she was one of the first stores to get the dress. Next, Sharon called a few of her stores and asked them to review circumstances surrounding the sale of the lilac dress?Where was it placed on the floor? How was it merchandised? What signage was used? How knowledgeable were the sales associates regarding the product? Was any additional product information needed to help sell the dress? Sharon also wanted to see if they had any complaints or comments from customers. Again the answer was no. Sharon wasn't giving up until she figured the "mystery" out. She went to one of the other buyers, Audrey, who was a friend of hers and who luckily for Sharon had a junior figure. Sharon asked Audrey if she would try on the dress for her to see how it fits and what size she was. Sharon then went to the store closest to her corporate headquarters and transferred a dress to take with her. When she arrived back at corporate she had Audrey try on the dress. The instant Audrey had the dress on, Sharon could see and Audrey could feel the problem. The overlay was not sewn on to match up with the silk screen dress and it twisted the fabric and print around the body. It would not lay flat and was very uncomfortable to wear. Sharon then began calling other stores to have them check for the same problem. Unfortunately, the same problem was found at all of the locations she had called. Sharon knew there was no way she could sell this defective dress. She quickly sent out an e-mail for all stores to pull the dress off of the selling floor and to wait for further directions.
When Sharon called Loren, Loren was very apologetic to her. He knew this was a larger buy for Sharon and that she had advertised it in a rather expensive promotional piece. Sharon decided on three different actions that would be acceptable to her to help with the problem. Sharon's first proposal was that Mod Girl take back all of the unsold merchandise because it was unsalable. The second choice was to have them pay to have the dresses marked down 75%. Hopefully at this price, Sharon could get rid of a bunch of them. The last option was to pay to have the dresses marked down 50% and for Sharon to get a $9,000 credit for her next order with Mod Girl. Loren went to the owner of his company and described the situation and Sharon's proposed actions for them to take. When Loren called Sharon back, he regrettably told Sharon that the owner of the company said that they won't take any action and Sharon has to figure out on her own what to do with the damaged dresses because she owned them. Loren apologized and said it was out of his hands. Sharon couldn't believe it?that they would not stand behind their merchandise and take responsibility for a defective dress they sold her. She didn't have money in her markdown budget to take care of the dresses on her own and she didn't want the dresses hurting the department's and store's image so she called Loren with one final proposal. Mod Girl could either choose one of the three previous options to rectify the situation, or Sharon would cancel all outstanding orders with them ($48,000 at cost) and end their relationship entirely. Sharon couldn't believe that it had to come to this, but she was going to stand her ground; either Mod Girl steps up to the plate and right their wrong, or their partnership was over.
Which option would be in the best interest of Mod Girl to choose and why?

Question 29

Twist of Fate
Laree Waltemyer
The Art Institute of York, Pennsylvania
Mod Girl had been a vendor in the junior department for Norman's department store for over six years. In this time, the junior dress buyer, Sharon Wayne, had built a good relationship with her sales representative, Loren. They worked well together and communicated openly about the successes and problem areas they had in doing business with each other. Sharon and the other junior department buyers were told by their Divisional Merchandise Manager (DMM) that they had just been approved to put together a spring booklet showcasing their merchandise. Sharon instantly thought of Mod Girl as one of her choices and knew just what dress she wanted to include; a lilac silk screened short dress with a sheer overlay. Due to the spring trend forecasts and early selling Sharon and her vendors already had on styles and colors, she knew this dress would be a success. With her DMM's approval, she increased her outstanding order to 1,350 dresses that cost $13.50 each and retailed for $29.99 each, that would be delivered right before the drop date of the booklet to all 75 stores. Now all she had to do was wait for the dresses to arrive in stores and the booklet be delivered to homes.
A few weeks later it was time and Sharon couldn't wait to see the selling of her featured dresses; especially Mod Girl's. The first week, eight lilac dresses were sold, or only 0.6% of the dresses. Sharon quickly was on the computer making sure the dresses actually made it to all of the stores in time for the booklet. Fortunately they did, but it didn't help her figure out why the lilac dresses weren't selling as well as she, and Loren, thought they would. Sharon decided to wait one more week to see if it was a style that just needed a little more time to take off. Much to her dismay, the second week was even worse; -3 dresses were sold, meaning that there were 3 more dresses returned than were sold. Sharon couldn't figure out why they weren't selling. The other styles in the booklet were doing very well, with 5-10% sold each of the two weeks. Sharon knew she had to do some investigating on her own to find out why the sales were so poor. First she called Loren to see if anyone else was reporting problems with the dress. Loren told Sharon that he hadn't received any other calls, but that she was one of the first stores to get the dress. Next, Sharon called a few of her stores and asked them to review circumstances surrounding the sale of the lilac dress?Where was it placed on the floor? How was it merchandised? What signage was used? How knowledgeable were the sales associates regarding the product? Was any additional product information needed to help sell the dress? Sharon also wanted to see if they had any complaints or comments from customers. Again the answer was no. Sharon wasn't giving up until she figured the "mystery" out. She went to one of the other buyers, Audrey, who was a friend of hers and who luckily for Sharon had a junior figure. Sharon asked Audrey if she would try on the dress for her to see how it fits and what size she was. Sharon then went to the store closest to her corporate headquarters and transferred a dress to take with her. When she arrived back at corporate she had Audrey try on the dress. The instant Audrey had the dress on, Sharon could see and Audrey could feel the problem. The overlay was not sewn on to match up with the silk screen dress and it twisted the fabric and print around the body. It would not lay flat and was very uncomfortable to wear. Sharon then began calling other stores to have them check for the same problem. Unfortunately, the same problem was found at all of the locations she had called. Sharon knew there was no way she could sell this defective dress. She quickly sent out an e-mail for all stores to pull the dress off of the selling floor and to wait for further directions.
When Sharon called Loren, Loren was very apologetic to her. He knew this was a larger buy for Sharon and that she had advertised it in a rather expensive promotional piece. Sharon decided on three different actions that would be acceptable to her to help with the problem. Sharon's first proposal was that Mod Girl take back all of the unsold merchandise because it was unsalable. The second choice was to have them pay to have the dresses marked down 75%. Hopefully at this price, Sharon could get rid of a bunch of them. The last option was to pay to have the dresses marked down 50% and for Sharon to get a $9,000 credit for her next order with Mod Girl. Loren went to the owner of his company and described the situation and Sharon's proposed actions for them to take. When Loren called Sharon back, he regrettably told Sharon that the owner of the company said that they won't take any action and Sharon has to figure out on her own what to do with the damaged dresses because she owned them. Loren apologized and said it was out of his hands. Sharon couldn't believe it?that they would not stand behind their merchandise and take responsibility for a defective dress they sold her. She didn't have money in her markdown budget to take care of the dresses on her own and she didn't want the dresses hurting the department's and store's image so she called Loren with one final proposal. Mod Girl could either choose one of the three previous options to rectify the situation, or Sharon would cancel all outstanding orders with them ($48,000 at cost) and end their relationship entirely. Sharon couldn't believe that it had to come to this, but she was going to stand her ground; either Mod Girl steps up to the plate and right their wrong, or their partnership was over.
Why would Sharon be willing to take such a drastic action if Mod Girl chooses to not do anything about the defective dresses?

Question 30

Cinderella's Shoes
Jaeil Lee, Ph.D.
Seattle Pacific University
Cinderella's Shoes has been successfully owned and operated for the past eight years by two young independent owners, Seung-hee and Nora. Cinderella's is known for carrying stylish but comfortable shoes of high quality. Their assortment consists of men's and women's casual shoes, boots, and sandals, along with some dressy shoes and accessories. Seung-hee and Nora do most of their buying nationally. Each year they attend two major shoe markets as well as peruse the latest product releases offered by their top selling vendors.
Cinderella's is located in a busy area of downtown Seattle. The customer base consists of frequent foot traffics of tourists and local people. The target market is 25-45-year-old men and women who have casual and active lifestyles and a moderate to high level of expendable income.
In the past year, Seung-hee and Nora set up a Web site to supplement their store sales. Although the online business is minimal, they expect it will provide service and convenience to their loyal customers and grow their business over time.
Seattle is well known for its rain throughout the year so this spring Seung-hee and Nora would like to introduce a new women's line of rainboots to their market. Currently, they are looking at a rainboot manufactured by Clark , one of the top selling national brands carried by Cinderella's. The boot will cost $22.00 a pair. Although the manufacturer's suggest retail price (MSRP) for the boot is $56.00, Seung-hee and Nora would like to explore different pricing strategies for the rainboot before determining the best approach to launching the new product.
As fall and winter season comes to a close, Seung-hee and Nora want to empty some of their racks to create space for spring and summer items. To remove their winter boots from the rack, sheep skin winter boots were marked down from the original price of $165 to the final sale price of $39. What % markdown was taken for the sheep skin boots?

Question 31

Cinderella's Shoes
Jaeil Lee, Ph.D.
Seattle Pacific University
Cinderella's Shoes has been successfully owned and operated for the past eight years by two young independent owners, Seung-hee and Nora. Cinderella's is known for carrying stylish but comfortable shoes of high quality. Their assortment consists of men's and women's casual shoes, boots, and sandals, along with some dressy shoes and accessories. Seung-hee and Nora do most of their buying nationally. Each year they attend two major shoe markets as well as peruse the latest product releases offered by their top selling vendors.
Cinderella's is located in a busy area of downtown Seattle. The customer base consists of frequent foot traffics of tourists and local people. The target market is 25-45-year-old men and women who have casual and active lifestyles and a moderate to high level of expendable income.
In the past year, Seung-hee and Nora set up a Web site to supplement their store sales. Although the online business is minimal, they expect it will provide service and convenience to their loyal customers and grow their business over time.
Seattle is well known for its rain throughout the year so this spring Seung-hee and Nora would like to introduce a new women's line of rainboots to their market. Currently, they are looking at a rainboot manufactured by Clark , one of the top selling national brands carried by Cinderella's. The boot will cost $22.00 a pair. Although the manufacturer's suggest retail price (MSRP) for the boot is $56.00, Seung-hee and Nora would like to explore different pricing strategies for the rainboot before determining the best approach to launching the new product.
In the accessories category, socks are one of the convenience items offered for sale by Cinderella's. Seung-hee and Nora bought a dozen pairs of winter socks for $7 per pair with a 48.11% markup at retail. (a) What retail price was placed on each pair of socks? (b) Nine pairs sold at full retail, leaving three pairs of socks that were marked down 25% for a clearance. What was the clearance price on each of the remaining three pairs of socks? (c) How much were Cinderalla's net sales for the entire dozen pairs of socks?

Question 32

Cinderella's Shoes
Jaeil Lee, Ph.D.
Seattle Pacific University
Cinderella's Shoes has been successfully owned and operated for the past eight years by two young independent owners, Seung-hee and Nora. Cinderella's is known for carrying stylish but comfortable shoes of high quality. Their assortment consists of men's and women's casual shoes, boots, and sandals, along with some dressy shoes and accessories. Seung-hee and Nora do most of their buying nationally. Each year they attend two major shoe markets as well as peruse the latest product releases offered by their top selling vendors.
Cinderella's is located in a busy area of downtown Seattle. The customer base consists of frequent foot traffics of tourists and local people. The target market is 25-45-year-old men and women who have casual and active lifestyles and a moderate to high level of expendable income.
In the past year, Seung-hee and Nora set up a Web site to supplement their store sales. Although the online business is minimal, they expect it will provide service and convenience to their loyal customers and grow their business over time.
Seattle is well known for its rain throughout the year so this spring Seung-hee and Nora would like to introduce a new women's line of rainboots to their market. Currently, they are looking at a rainboot manufactured by Clark , one of the top selling national brands carried by Cinderella's. The boot will cost $22.00 a pair. Although the manufacturer's suggest retail price (MSRP) for the boot is $56.00, Seung-hee and Nora would like to explore different pricing strategies for the rainboot before determining the best approach to launching the new product.
Seung-hee and Nora purchased 24 pairs of a style of walking shoes at a cost of $35.50 for each pair that retail at $69.99. The style was so successful that only six pairs remained in stock. When they reordered the style in the same and one additional color, however, the new stock had to be purchased at a cost of $40.00. (a) If Seung-hee and Nora want to price the 36 new and six remaining pairs of shoes at the same price, $74.99, what were the additional markup dollars on the remaining six pairs in inventory? (b) What was the additional markup percent on the remaining inventory? (c)What was the markup percent on the new (reordered) 36 pairs of walking shoes?

Question 33

Cinderella's Shoes
Jaeil Lee, Ph.D.
Seattle Pacific University
Cinderella's Shoes has been successfully owned and operated for the past eight years by two young independent owners, Seung-hee and Nora. Cinderella's is known for carrying stylish but comfortable shoes of high quality. Their assortment consists of men's and women's casual shoes, boots, and sandals, along with some dressy shoes and accessories. Seung-hee and Nora do most of their buying nationally. Each year they attend two major shoe markets as well as peruse the latest product releases offered by their top selling vendors.
Cinderella's is located in a busy area of downtown Seattle. The customer base consists of frequent foot traffics of tourists and local people. The target market is 25-45-year-old men and women who have casual and active lifestyles and a moderate to high level of expendable income.
In the past year, Seung-hee and Nora set up a Web site to supplement their store sales. Although the online business is minimal, they expect it will provide service and convenience to their loyal customers and grow their business over time.
Seattle is well known for its rain throughout the year so this spring Seung-hee and Nora would like to introduce a new women's line of rainboots to their market. Currently, they are looking at a rainboot manufactured by Clark , one of the top selling national brands carried by Cinderella's. The boot will cost $22.00 a pair. Although the manufacturer's suggest retail price (MSRP) for the boot is $56.00, Seung-hee and Nora would like to explore different pricing strategies for the rainboot before determining the best approach to launching the new product.
Seung-hee and Nora plan to add the Clark rainboots to their spring assortment. Consider two plausible different pricing strategies from the following list: prestige pricing, leader pricing, competitive pricing, everyday low pricing, and high/low pricing. Develop each of the two pricing strategies for the rainboot using a 13-week selling period in a table format.

Question 34

Cinderella's Shoes
Jaeil Lee, Ph.D.
Seattle Pacific University
Cinderella's Shoes has been successfully owned and operated for the past eight years by two young independent owners, Seung-hee and Nora. Cinderella's is known for carrying stylish but comfortable shoes of high quality. Their assortment consists of men's and women's casual shoes, boots, and sandals, along with some dressy shoes and accessories. Seung-hee and Nora do most of their buying nationally. Each year they attend two major shoe markets as well as peruse the latest product releases offered by their top selling vendors.
Cinderella's is located in a busy area of downtown Seattle. The customer base consists of frequent foot traffics of tourists and local people. The target market is 25-45-year-old men and women who have casual and active lifestyles and a moderate to high level of expendable income.
In the past year, Seung-hee and Nora set up a Web site to supplement their store sales. Although the online business is minimal, they expect it will provide service and convenience to their loyal customers and grow their business over time.
Seattle is well known for its rain throughout the year so this spring Seung-hee and Nora would like to introduce a new women's line of rainboots to their market. Currently, they are looking at a rainboot manufactured by Clark , one of the top selling national brands carried by Cinderella's. The boot will cost $22.00 a pair. Although the manufacturer's suggest retail price (MSRP) for the boot is $56.00, Seung-hee and Nora would like to explore different pricing strategies for the rainboot before determining the best approach to launching the new product.
Of the pricing strategies described in Question 4, which pricing strategy would you recommend? Justify your selection.

Question 35

The contemporary department received 120 fashion T-shirts for the spring season. At the end of the month 35 T-shirts were on hand. What is the percent sell-through of the T-shirts?

Question 36

The store received 1,015 blouses that retail for $85 each on the first of the month. During the first week, 55 blouses sold. What was the sell-through for week one?

Question 37

The accessories department received 500 designer sunglasses that retailed for $285. The department sold 100 the first week, 35 the second week, 60 the third week, and 20 the fourth week. Calculate the sell-through percent for the month.

Question 38

A buyer has 350 sandals on hand at the beginning of the month and first week has a 20% sell-through. How many units were sold during week one?

Question 39

Using the information below calculate the sell-through for (a) cashmere crews, (b) cashmere-blend cardigans, and (c) the total for the department.

Question 40

During January, the markdowns for rugs at Jossett's Designs totaled $15,200. Rug sales during the month were $95,000. What was the markdown percent for January?

Question 41

For a three-month period, the Bath Shop had net sales of $110,000. If the markdowns for this period totaled $16,775, determine the markdown percent.

Question 42

The merchandise plan for the children's department indicated planned sales of $850,000 and planned markdowns of 30.2%. Find the planned dollar markdowns.

Question 43

Last year, markdowns for case goods in a design shop were 15.5%. If markdowns totaled $84,475, determine the net sales for the year.

Question 44

During June, the shoe department in a sporting-goods store marked 200 pairs of $78 athletic shoes down to $59. The June promotion was a huge success, and all of the shoes sold at $59. What was the markdown percent on these athletic shoes for June?

Question 45

For a special two-day sale, a sportswear buyer reduced the price of 30 blouses from $40 to $32 each. Twenty-one of the blouses were sold during the sale. After the sale was over, the remaining 9 blouses were returned to their original retail price. Determine (a) the markdown cancellation and (b) the $ net markdown.

Question 46

A buyer reduced the price of 62 shirts from $28 to $20 each for a special three-day sale. During the sale, 44 shirts were sold. After the sale, the remaining shirts were priced at $25 each. Determine the markdown cancellation.

Question 47

A buyer reduced the price of 42 jackets from $85 to $60 each for a one-day sale. Forty jackets were sold during the event. After the sale, the remaining jackets were marked up to $75. All of the jackets were sold at that price. Determine (a) the markdown cancellation and (b) the $ net markdown.

Question 48

During March, the Camera Shop had a net markdown of $529. If the total markdowns amounted to $830, determine the markdown cancellation.

Question 49

The buyer for the boys' department had received 4 dozen all-weather jackets that retailed for $68 each. After several weeks, 8 of the jackets were sold and the remaining 40 jackets were marked down to $50 for a one-day sale. Twelve jackets were sold during the one-day sale. All remaining jackets were re-marked to $61 and eventually sold at that price. Determine the net markdown percent.

Question 50

A buyer reduced the price on 135 blouses from $49.99 to $39.99 for an anniversary sale. After the sale, the remaining 54 blouses were returned to the presale price. Determine (a) the markdown cancellation and the (b) $ net markdown.

Question 51

Six hundred shirts were purchased at a cost of $15.75 each. The buyer decided to retail the shirts for $34.99 each. After a month, 123 shirts were sold at $34.99. The remaining shirts were marked to $24.99 for a store-wide sale. Following the sale, 192 shirts were left and were repriced to $29.99. Determine the markdown cancellation.

Question 52

A buyer received 5 dozen jackets retailing for $150 each. After several weeks, only 8 of the jackets had been sold. The prices of the remaining 52 jackets were reduced to $110 each for a promotion. During the promotion, 10 of the jackets sold at the reduced price. After the promotion, the remaining 42 jackets were repriced to $140 and sold. Determine the net markdown percent.

Question 53

A buyer had 68 coats in stock at a retail price of $485 each. The coats were marked down to $399 for a special sale. When the special sale ended, the buyer marked the 39 remaining coats back to their original price. Determine the markdown cancellation.

Question 54

For a Veterans Day sale, a buyer reduced the prices of 72 shirts from $49 each to $35 each. The next day, the 48 shirts that remained were repriced to $45. What was the amount of the markdown cancellation?

Question 55

Currently, a retailer has 20 men's casual slacks on the floor priced at $35.00. A new shipment of the same slacks is arriving but the buyer will need to charge $40.00 to maintain his gross margin. To avoid confusion on the sales floor, the buyer reprices the existing slacks to $40.00 and all sell by the end of the month at this new price. Calculate the additional markup percent on the slacks.

Question 56

The housewares department consistently carried coffeemakers. A shipment of 24 new coffeemakers just arrived adding to the 12 that were already in inventory. Previously, they were priced at $49 but with the new shipment all would be priced at $59. All coffeemakers sold at the $59 price point. What was the additional markup percent gained on the coffeemakers already in inventory?

Question 57

A store gives its employees a 25% discount on all purchases. If a salesperson buys a coat that retails for $249, (a) what is the dollar amount of the employee discount? (b) If sales tax is 8%, what will the employee pay for the coat?

Question 58

The lawyers for a store receive a 10.5% discount on all merchandise purchased. The tax on all purchases is 7%. If a store's lawyer bought a suit that retails for $500 and a shirt that retails for $50, determine the total amount of the purchase, including tax.

Question 59

As manager of a store, Mr. Thomas receives a 30% discount on clothing and a 20% discount on furniture. He purchases two suits retailing for $350 and $285 and a set of lawn furniture priced at $549. What is his total bill, including a 6.5% tax on all items?

Question 60

Jane receives a 15% employee discount on all merchandise. Determine her total payment for a group of items retailing for $25.00, $19.00, $49.99, $15.99, and $11 (include 7% tax).

Question 61

As a frequent customer at a small decorative-fabric store, a local interior designer receives a 20% discount on all purchases. She bought 12 finials at $32 each, 6 fluted drapery rods at $42 each, and 12 metallic tassels at $48 each. Include a 9% tax on the purchase and calculate her total payment.

Question 62

Travis found a coupon that offers a 20% discount on all purchases made from a local sporting-goods store on Wednesdays. While shopping at this store one Wednesday, Travis opted to buy a life jacket priced at $79, two paddles priced at $38.00 each, and a water bottle priced at $12. If the sales tax is 7.25%, what is Travis's bill, after his use of the store coupon?

Question 63

Juan received an e-mail with a promotional discount offering a 10% discount on all purchases from a certain company's Web site. He selects a book for $40 that is currently offered with a 15% discount. He also selects a CD for $15. Shipping is free and no tax is charged. How much is Juan's bill?

Question 64

As a member of Pets Customer Loyalty Program, Marjorie is entitled to a 15% discount on all her purchases at the store. Marjorie purchases food and treats for her cat priced at $6.75, $11.50, $3.25, $5.50, and $23.00. (a) How much is Marjorie's bill? (b) How much money did Marjorie save by being a member of the Customer Loyalty Program?

Question 65

University students receive a 10% discount on all supplies and a 15% discount on all apparel at the Varsity Shop. Reggie purchases a lab notebook for $4.50, a portfolio for $13.50, and a sweatshirt for $20.00. Sales tax is 6.5%. Determine the total amount for Reggie's purchases.

Question 66

As an employee of the Cool Kids Store, Winston, as well as his wife, Karol, receives a 20% employee discount. Karol selects jackets marked at $36.88 and $41.88 for their two children. With the employee discount and a 5% sales tax, how much is Karol's bill?