Asked by Tempyst Douglas on Apr 24, 2024
Digital Devices sets its retail prices on computers, monitors, and printers to generate a rate of mark-up on selling price of 30%. Overhead expenses normally work out to be 30% of cost. What is the operating profit on a monitor that costs $345?
Operating Profit
The revenue made from the primary functions of a business, without accounting for interest and tax deductions.
- Ascertain the markup by analyzing the cost and selling price.
- Acquire an understanding of the connection among operating profit, overhead charges, and markup in retail scenarios.
Learning Objectives
- Ascertain the markup by analyzing the cost and selling price.
- Acquire an understanding of the connection among operating profit, overhead charges, and markup in retail scenarios.