A luggage buyer plans a European buying trip to purchase $250,000 (cost value) of assorted travelpacks. On the first stop in London, orders are placed for $92,000 (at cost) for an assortment ofleather luggage, which will be priced at $180,000 retail. If the average markup is targeted at 52.0%,what markup percentage should be taken on the balance of the European orders?

TR= 250000/48%=520,833.33 Balance = 520833.33-180000 = 340833.33 TC balance =…

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should be taken on the balance of the European on

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A luggage buyer plans a European buying trip to purchase $250,000 (cost value) of assorted travel
packs. On the first stop in London, orders are placed for $92,000 (at cost) for an assortment of
leather luggage, which will be priced at $180,000 retail. If the average markup is targeted at 52.0%,
what markup percentage should be taken on the balance of the European orders?

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