Marshalls Retailing now carries the Fabletics yoga pants line of athletic wear. Marshalls needs to ensure that the new line contributes no less to their profit than other clothinglines it carries. The Fabletics line needs to provide a 48.5% gross profit margin percentage. Marshalls buys the Fabletics yoga pants at a cost of $12 per pair.At what price should Marshalls sell the Fabletics Yoga pants?

Question

Quizplus · Accepted Answer

To ensure a 48.5% gross profit margin percentage, the selling price can be calculated as follows:

Selling price = Cost / (1 - Gross profit margin percentage)

= $12 / (1 - 0.485)

= $12 / 0.515

= $23.30

Therefore, Marshalls should sell the Fabletics Yoga pants at a price of $23.30 to maintain a 48.5% gross profit margin percentage.

Marshalls Retailing Now Carries the Fabletics Yoga Pants Line of Athletic