In preparation for a buying trip, a buyer determined a 54% miarkup was required
ID: 3199129 • Letter: I
Question
In preparation for a buying trip, a buyer determined a 54% miarkup was required on all purchases which amounted to $750,000 at retail. Upon completion of the trip, the buyer reviewed the orders placed. At the end of the season, a vendor analysis revealed the sales results shown below: Cost s 25,000 40,000 60,000 55,000 75,000 90,000 Final retai Resource A Resource B Resource C Resource D Resource E Resource F Total Initial retail s 50,000 85,000 135,000 135,000 170,000 175,000 50,000 83,000 30,000 135,000 167,000 165,000 Compute the following: (a.) Total cost, total initial retail and total final retail for (b.) Initial markup percentage for each resource. (6 pts) (c.) Final markup percentage achieved for each resource (d.) Highlight the row of the v (e.) Name your worksheet Vendor Analysis all resources. endorresource that achieved the best final MU% outcome (1 pt) The table should look like Vendors Resource A Cost Initial talRetail-|Initial-MU%-l Final Retail I-Final MU%Explanation / Answer
Solution: (a)
Cost Initial retail Final retail
Resource A $ 25,000 $ 50,000 $ 50,000
Resource B 40,000 85,000 83,000
Resource C 60,000 135,000 130,000
Resource D 55,000 135,000 135,000
Resource E 75,000 170,000 167,000
Resource F 90,000 175,000 165,000
Total $345,000 $750,000 $730,0
(b). Initial mark-up percentage:
Resource
IMU %
A
(50000-25000)/85000=50%
B
(85000-40000)/85000=52.94%
C
(135000-60000)/135000=55.56%
D
(135000-55000)/135,000=59.26%
E
(170000-75000)/170000=55.88%
F
(175000-90000)/175000=48.57%
(c). Final mark-up
Percentage:
Resource
Final MU %
A
(50000-25000)/85000=50%
B
(83000-40000)/83000=51.81%
C
(130000-60000)/130000=53.85%
D
(135000-55000)/135,000=59.26%
E
(167000-75000)/167000=55.09%
F
(165000-90000)/165000=45.45%
Resource
IMU %
A
(50000-25000)/85000=50%
B
(85000-40000)/85000=52.94%
C
(135000-60000)/135000=55.56%
D
(135000-55000)/135,000=59.26%
E
(170000-75000)/170000=55.88%
F
(175000-90000)/175000=48.57%