MANAGEMENT

Detailed explanation-1: -Markup and expense percents cannot be compared if they are based on different figures; both must be based on either retail or cost figures. Markup percent based on retail is always less than 100%. Markup percent based on retail may be more than 100%.

Detailed explanation-2: -If you have a product that costs $15 to buy or make, you can calculate the dollar markup on selling price this way: Cost + Markup = Selling price. If it cost you $15 to manufacture or stock the item and you want to include a $5 markup, you must sell the item for $20.

Detailed explanation-3: -Why is it important to hold back some of the OTB dollars? New lines or items may appear that the buyer will want to purchase. Reorders may need to be placed to fill in staple stock or replace fast-selling items. Special promotions from vendors may become available.

Detailed explanation-4: -Why do retailers express markup as a percent rather than as a dollar figure? Percents facilitate analysis and comparison of merchandising and operating results.