What is the effect of net markup on the cost-retail ratio when using the conservative retail method?

What is the effect of net markup on the cost-retail ratio when using the conservative retail method?




A. Increases the cost-retail ratio
B. No effect on the cost-retail ratio
C. Depends on the amount of the net markdowns
D. Decreases the cost-retail ratio


Answer: D. Decreases the cost-retail ratio


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