A pair of noise-cancelling headphones retails for $349. The dealer's overhead is 25% of cost, and normal operating profit is 16 $23\frac{2}{3}$ % of cost.
a) What is the largest amount of markdown that will allow the dealer to break even?
b) What rate of markdown will price the headphones at cost?

Question

A pair of noise-cancelling headphones retails for $349. The dealer's overhead is 25% of cost, and normal operating profit is 16

23\frac{2}{3}

% of cost.
a) What is the largest amount of markdown that will allow the dealer to break even?
b) What rate of markdown will price the headphones at cost?

Albert Bankole · Accepted Answer

Final Answer : a) $41.06b) 29.41%

A pair of noise-cancelling headphones retails for $349. The dealer's overhead is 25% of cost, and normal operating profit is 16 $23\frac{2}{3}$ % of cost.
a) What is the largest amount of markdown that will allow the dealer to break even?
b) What rate of markdown will price the headphones at cost?

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A pair of noise-cancelling headphones retails for $349. The dealer's overhead is 25% of cost, and normal operating profit is 16 23\frac{2}{3}32​ % of cost.a) What is the largest amount of markdown that will allow the dealer to break even?b) What rate of markdown will price the headphones at cost?

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Learning Objectives

Learning Objectives

Related questions

A pair of noise-cancelling headphones retails for $349. The dealer's overhead is 25% of cost, and normal operating profit is 16 $23\frac{2}{3}$ % of cost.
a) What is the largest amount of markdown that will allow the dealer to break even?
b) What rate of markdown will price the headphones at cost?