The Alpha Company uses the retail inventory method for valuation of its inventory. If an item had a cost of $45, was originally marked to sell at $60, was later priced at $55, and finally was priced at $68, the final price change is a

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The original selling price was $60, reduced to $55 (markdown of $5), and then increased to $68 (markup of $13). The net markdown is zero because the final price is higher than the original, and there is an additional markup of $8 from the original price.

The Alpha Company Uses the Retail Inventory Method for Valuation