Asked by riley rajewski on Jul 04, 2024
Verified
A retailer pays $81 to a wholesaler for an article. The retail price is set using a rate of mark-up on selling price of 40%. To increase traffic to his store, the retailer marks the article down 20% during a sale. What is the sale price?
Mark-up
A rephrased definition: The amount by which the selling price of an item exceeds its cost price, expressed as a percentage of the cost.
Markdown
A reduction from the original or retail price of a good or service to increase its attractiveness to buyers.
- Establish the markup by calculating the difference between cost and selling price.
- Scrutinize and calculate the rate of reduction required to achieve aimed profit margins or break-even statuses.
Verified Answer
GP
Learning Objectives
- Establish the markup by calculating the difference between cost and selling price.
- Scrutinize and calculate the rate of reduction required to achieve aimed profit margins or break-even statuses.
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