The Bow Shop caters to the archery enthusiasts. It has estimated net sales of $45,300. The maintained markup used by the store is 60 percent of net sales. Reductions are estimated to be 12 percent of net sales. Calculate the store's initial markup.

Question

Quizplus · Accepted Answer

The initial markup is calculated using the formula: Initial Markup % = (Maintained Markup % + Reductions %) / (1 - Reductions %). Substituting the given values: (60% + 12%) / (1 - 12%) = 64.29%.

The Bow Shop Caters to the Archery Enthusiasts