In preparation for a buying trip, a buyer determined a 54% markup was required o

Question

In preparation for a buying trip, a buyer determined a 54% markup was required on 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 Initial retail Resource A Resource B Resource C Resource D Resource E Resource F Total 50,000 85,000 135,000 135,000 170,000 175,000 Final retail S 50,000 83,000 130,000 135,000 167,000 165,000 2 Compute the following: (a.) Total cost, total initial retail and total final retail for all resourc (b.) Initial markup percentage for each resource. (6 pts) (c.) Final markup percentage achieved for each resource ttherow of the vendor resource that achieved the best final MU% outcome. (1 pt) (e.) Name your worksheet Vendor Analysis The table should look like Cost Initial Retail Initial MU% Final Retail Final MU% Vendors Resource A Resource B

Explanation / Answer

The marketup formula is as follows: Markup % = (selling price – cost) / cost x 100 VENDOR   ANALYSIS Cost $ Initial Retail Price $ Initial    M U % Final Retail $ Final   MU % Resource A 25000 50000 100.00 50000 100.00 Resource B 40000 85000 112.50 83000 107.50 Resource C 60000 135000 125.00 130000 116.67 Resource D 55000 135000 145.45 135000 145.45 Resource E 75000 170000 126.67 167000 122.67 Resource F 90000 175000 94.44 165000 83.33 Total 345000 750000 117.39 730000 111.59 The Best Final MU% Performance Resource D 55000 135000 145.45 135000 145.45

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