Assignment 1: Calculate Markups

Task
Calculate the answers to the following scenarios. Show step-by-step calculations starting with
application of formula to arrive at the answer.
Scenario 1
If an accessory department shows a gross margin of 53 percent and retail reductions amounting
to 16 percent, what is the initial markup%?
Scenario 2
Determine the initial markup percent based on the following projection figures for a menswear
department.
Net Sales
Profit
Expenses
Shortages
Alteration Costs
Cash Discounts

$21,000
$2,300
$7,500
$300
$150
$280

Scenario 3
What initial markup percentage will be required to achieve a 4.25 percent profit based on the
following projections for a teens-wear department?
Expenses
Markdowns
Stock Shortages
Employee Discounts
Cash Discounts
Alteration Costs

42.0%
2.8%
1.0%
0.5%
0.3%
0.2%

Deliverable
Use the given template to document your responses and submit it to the W4: Assignment 1
Dropbox by Saturday, September 14, 2013. You can use the Word or Excel template
depending on your comfortyoull be graded on the calculations and not on the choice of
template.
Participation

Start reviewing and responding to your classmates as early in the week as possible. Continue the
discussion through the end of the week. By Monday, September 16, 2013, review and respond
to at least two of your classmates' work, providing constructive feedback, suggestions, questions,
and additional helpful information. Each peer response should be a minimum of 150 words.
Information, comments, and conclusions should be supported by your research and sources.
Keep the following in mind when you are responding to your peers:

Did they discuss any thoughts that you had not considered?
What did you learn from their post?

Grading Scale for Assignment Criteria:

Excellent Good Moderate

Needs
Improvement
5 Points 4.5
4
3.5
Excellent Good Moderate
Needs
Improvement
10 Points 8.5
8
6.5
Excellent Good Moderate
Needs
Improvement
15 Points 12.5
12
9.5
Excellent Good Moderate
Needs
Improvement
20 Points 16.5
16
12.5

Below
Standard
3
Below
Standard
6
Below
Standard
9
Below
Standard
12

Unacceptable
02 Points
Unacceptable
04 Points
Unacceptable
06 Points
Unacceptable

Assignment 1 Grading Criteria

Content
Correctly calculated initial markup% for accessory
department.
Correctly calculated initial markup% for menswear
department.
Calculated initial markup% for teens-wear department.
Demonstrated step-by-step calculations for all scenarios.
Format
Used the given template to document responses and
submitted it to the W4: Assignment 1 Dropbox by
Saturday, September 14, 2013. Used the provided Word or
Excel template.
Participation
Commented on at least two peers assignments with specific

08 Points

Maximum
Points

10

10
10
10

remarks within 48 hours of the assignment deadline

Monday, September 16, 2013at least 150 words for each
response.
Comments included at least two of the following:

Questions regarding the content of assignment.

Observations regarding the content of assignment.
Constructive feedback to assist classmates with
improving their work.

Vocabulary and topics from the text/lecture should be used to

support your discussion, and sources should be cited in MLA
format.
Total:

50

For assistance with any problems you may have when completing this assignmentORto offer
your assistance to classmates, please use the Problems and Solutions Discussion area located
through the left side navigation link.