How to Price Yoga Clothing Items Effectively
a. What is the selling price for Leah’s tank tops and pullovers after applying a 60% markup?
Tank Tops ______________
Pullovers ______________
b. What is the markup percentage on Leah’s yoga pants if they are priced 30% below her competitor's price?
Mark-up Percentage: Yoga Pants ______________%
c. How do you calculate the gross profit margin for tank tops, pullovers, and yoga pants?
Gross Profit Margin
Tank Tops _______________%
Pullovers _______________%
Yoga Pants _______________%
d. What are the new selling prices for tank tops, pullovers, and yoga pants with a standard target margin percentage of 45%?
Selling Price
Tank Tops ______________
Pullovers ______________
Yoga Pants ______________
a. How to Price Yoga Clothing Items Effectively
To determine the selling price for Leah's tank tops and pullovers, we need to apply a markup percentage of 60% to their respective costs.
b. How to Set the Right Price for Yoga Pants
To determine the markup percentage on Leah's yoga pants, calculate the difference between her competitor's price and her cost.
c. Understanding Gross Profit Margin Calculation
Calculation of the gross profit margin for each item.
d. Setting New Prices for Enhanced Profitability
To determine the new selling prices with a standard target margin percentage of 45%, calculate the desired profit and add it to the cost.
a. To determine the selling price for Leah's tank tops and pullovers, we need to apply a markup percentage of 60% to their respective costs.
The cost of the tank tops is $34. Applying a markup of 60%, we calculate the markup amount: $34 * 0.60 = $20.40. Adding this to the cost gives a selling price of $54.40.
Similarly, for the pullovers, with a cost of $44, applying a 60% markup results in a selling price of $70.40.
b. To determine the markup percentage on Leah's yoga pants, consider pricing them 30% below her competitor's price of $114 with a cost of $47. The markup percentage is approximately 142.55%.
c. The gross profit margin for each item is calculated as follows:
- Tank Tops: 37.50%
- Pullovers: 37.50%
- Yoga Pants: 58.77%
d. To determine the new selling prices with a standard target margin percentage of 45%
- Tank Tops: $49.30
- Pullovers: $63.80
- Yoga Pants: $68.15